PGNiG Cautious on Lubocine After Markowala Results
Michal Sztubski, The President of the Management Board of The Polish Oil and Gas Company (PGNiG), warned against excessive optimism for shale gas development in Poland.
Drilling at the Markowola-1 well near Kozienice, Lublin province in Eastern Poland and the fracturing of the tight gas deposits by Halliburton, has brought lower results than expected.
PGNiG drilled the first well in Markwola in late April and contracted Halliburton to performed two large-scale fracturing operations in July in search of unconventional gas reserves.
Szubski said that his colleagues from Halliburton admitted that they learned a lot about the geology of Poland and it shows a certain humility to them that they must continue to learn; Poland is not the United States and that the technology needs to be adapted to the Polish geological conditions.
"Someone always has to do something first, and we did," he said.
Asked if the extraction of gas in Markowola is excluded, he said: - we'll be there to do further work.
PGNiG expects to spend 100 million zl. on the shale gas exploration in 2010. PGNiG hold 13 of the 62 exploration licenses that Poland has issued to prospect for shale gas and has applied for two more.
Currently, PGNiG is drilled for shale gas in Lubocinie Pomerania.
Drilling is planned for 1000 to 1100 meters,and is drilled to 600 meters at present. We expect between 600 and 800 meters (depth) zone will potentially trapped gas (shale)," - said Szubski.
"Drilling will be completed in February and March next year, then the entire core will be downloaded and discuss who would examine it" - he added.