Shale Gas Flows From PGNiG Concession

Polish Oil and Gas Company, (PGNiG) has announced the technical production of shale gas from its concession at Pn Lubocinie near Wejherowo.

The Polish Prime Minster was amongst representatives of PGNiG and government, who took part in what was called a “landmark event” for Poland.

PGNiG provided Natural Gas Europe with a photograph of what is indicated as a continuously burning flare ("candle") at the Lubocino-1 well.

PGNiG said that analyses of gas from the Silurian and Ordovician shale have confirmed positive initial indications including the lack of hydrogen sulfide and low in nitrogen. Additionally, the analysis confirms the presence of heavy hydrocarbons.

PGNiG SA is now preparing to drill horizontal holes and fracturing treatments for the concession. This work is expected to take at least several months.

Should activities proceed as planned, PGNiG will start a test operation in the second half of 2013, with commercial production will begin in 2014.

PGNiG commenced exploratory drilling for shale gas near to Wejherowo last December, with the drilling of a vertical borehole with a depth of about 3.5 kilometers.

Drilling concluded in March.  At that time, PGNiG deputy head Marek Karabula commented that indications were encouraging and the company planned to spend the next few months testing the outcome of the exploration.

PGNiG currently holds 15 concessions for exploration of shale gas. In its statement, PGNiG said that it plans to acquire further concessions.

The company also holds several concessions for tight gas in the region of Wielkopolska.

The company said that it was currently preparing to start drilling on the next concession Bingley, Royal Lubycza.