PGNiG Plans Floatation of Exploration Unit Mid-Year

Polish state-controlled gas company expects its exploration and servicing branch to be ready for an IPO later this year.

According to media reports, the listing of PGNiG Poszukiwania (PGNiG Exploration) on the Warsaw Stock Exchange should be ready before the end of the first half of 2013.

Last year the quasi-monopoly PGNiG merged several servicing and exploration units.

Three units based in southern towns of Krakow, Jaslo and Krosno, one operating from Pila in the North and one from Zielona Gora in the West formed a new subsidiary.

Last year it was reported, that in order to upgrade the machinery, the Poszukiwania will need at least 1 billion PLN (240 mln EUR, 320 mln USD).

PGNiG intends to retain a control over the Poszukiwania, retaining 50 percent plus one share.

The gas company holds 15 out of 112 licenses for shale gas exploration issued in Poland. To date, it has drilled four wells: in Markowola in Mazowsze, Tomaszow Lubelski in Lubelskie region, Opalino, and two wells in Lubocino in Pomorze region.

The most successful well, is located in Lubocino, where after going horizontal the company experienced some obstacles, which caused “schedules to be extended.”

Intensification of works is planned for this year, with three wells, in Wysino, Kochanowo and Borcz in Pomorze, to be drilled in the coming weeks.