San Leon Hands Back Polish Shale Acreage

San Leon Energy, which once had more shale gas acreage in Europe than any other company, wants to abandon its most promising and final shale exploration licences in Poland.

The AIM-listed explorer said December 5 it has informed Poland’s environment ministry of its intention to relinquish its interest in its remaining Baltic Basin shale gas concessions (Gdansk West and Szczawno), onshore Poland. Its move was largely expected, and will leave San Leon with only conventional assets in Poland, which are subject to divestments announced September 19 2017.

The impairment charge on the balance sheet as a result of relinquishing these assets is approximately €7.3mn ($8.7mn). The annual cost saving from the relinquishments is some €250,000, plus any work commitments. San Leon CEO Oisin Fanning said: “The company continues to focus on its core Nigerian asset, and this reduction in the exposure in Poland is a natural step towards achieving this.”

It’s been two years since any shale exploration drilling was conducted in Poland. In 2015 Chevron followed ExxonMobil, Talisman (now part of Repsol), Marathon and the UK’s 3Legs in pulling  out from shale operations there. Since then, PGNiG, Orlen and Lotos have wound down shale activities as well.