San Leon Reduces Polish Exposure to Focus on Appraisal, Production
Ireland-based San Leon Energy announced a reduction in its licences in Poland, in line with its new long-term strategy to reduce the exploration component of its portfolio and focus on appraisal, development and production.
“As part of the company’s new strategy to focus on development and production, enabling San Leon to transform into a near-term cash-generating producer, the company has made the decision to remove some of its Polish acreage. The decision is also required as a result of the introduction of significant yearly licence fees in Poland over the past couple of years. The company remains committed to its remaining acreage in Poland, which includes the Baltic Basin shale licences and the recently announced gas discovery at the Rawicz field’ Oisin Fanning, San Leon Executive Chairman, commented in a note released on Tuesday.
San Leon decided to remove from its current portfolio the following Polish licences: Czersk (relinquishment), Budzów (relinquishment), Ilawa (relinquishment), Praszka (relinquishment), Bieszczady area (Blocks 437, 438, 456, 457, 458 and the Company’s interest in partial Blocks 416, 417 and 436).
The last blocks have been taken on by Polish PKN Orlen, who have assumed past and future benefits and liabilities.
Referring to the blocks 437, 438, 456, 457 and 458 and also partially on blocks number 416, 417 and 436, PGNiG wrote a communiqué explaining that new technical expertise could open the doors to new opportunities.
PGNiG and Orlen Upstream did indeed sign a Joint Operating Agreement. The companies aim to jointly conduct analytic and research works in eight concession blocks in Podkarpackie Voivodeship grouped under the joint name 'Bieszczady' Project.
“The Carpathian Foredeep is, historically speaking, one of the most prospective areas when it comes to concentration of hydrocarbons. For years we have been systematically documenting deposits in Bieszczady area. I believe that gaining a new partner who offers both co-financing and experience in acquisition and interpretation of geological data, will open for us new perspectives in this area”, said Zbigniew Skrzypkiewicz, Vice-President for Exploration and Production, PGNiG.
According to PGNiG, Orlen Upstream will offer both co-financing and experience in acquisition and interpretation of geological data.
The two companies are already working together in the Międzychód-Gorzów Wielkopolski concession and in Wronki concession, where they are preparing for hydraulic fracturing.
In February, San Leon Energy announced its first commercial gas discovery in Poland, saying that the field can be developed as a “conventional” resource.
On Tuesday, General Electric (GE) and Statoil’s Sustainability Collaboration announced the five winners of its inaugural Open Innovation Challenge that focused on addressing the use of sand in unconventional operations. Three winners are American, two are Canadian.