PGNiG Completes First Stage of Delayed Horizontal Frack in Lubocino

PGNiG has completed the first stage of its delayed horizontal fracturing operation in Lubocino.

Results will be available in several weeks, after flow tests are conducted according to the Polish gas company in a press release.

Works in Lubocino, Pomorze, are two months later than anticipated. First results were initially expected before the end of 2012.

The company admits it encountered unexpected geological conditions. "They turned out to differ significantly from those found in the U.S." the press release specifies. According to the spokeswoman Joanna Zakrzewska, necessary adjustments have brought experience that will pay off in the future.

Haliburton is conducting the fracturing at the site in the Wejherowo concession area near the Baltic coast.

The Lubocino-2H well is the third horizontal well being fractured in Poland and the first by a Polish company. It is considered by the company the most promising shale gas exploratory drilling site.

PGNiG has 15 of the country's over 110 shale gas concessions.

According to the agreement signed in the Summer of 2012, four state-controlled companies: KGHM, Tauron, PGE and Enea, were to signed at the beginning of February a cooperation agreement with PGNiG on shale gas exploration and extraction within Wejherowo concesssion area.

Two weeks ago companies announced they need more time to find a compromise on their planned co-operation.