PGNiG: Flaming Optimism

"The candle burned, gas was flowing - a good symptom showing how you can be very optimistic in the surge for gas in this region," said Zbigniew Zabkiewicz, Exploitation and Mining Director, PGNiG at Shale Gas World, speaking about his company's five concessions in the north of Poland, in the area of the Baltic Sea basin, where the company was doing most of its work.

Mr. Zabkiewicz explained what the company had done with its 95 concessions, 15 of which were dedicated to shale gas exploration, talked about results, and outlined what plans the company had for development in Poland.

He said that PGNiG was currently applying for another three concessions, also reporting that PGNiG had done two more fracc jobs in the Silurian shale, and had completed drilling in the Lubocino, where the company hoped to perform hydraulic fracturing in the shale's horizontal section.

He also spoke of the Lubelski basin area, which was 4km in length. "We've taken core samples and they've been sent for analysis and are quite optimistic about continuing our work," he said, explaining that would consist of completing another well and taking more core samples.

"We obtained quite a good flow of gas from the Cambrian shale, having drilled through the deposit," said Mr. Zabkiewicz.

"According to our geologists we think we can further continue our activities, as all results have been satisfactory and we have decided to intensify our work in 2013. We are happy to hear that we don't hear about any legislative changes, but changes in legal procedures are good for us."

He said that hydraulic fracturing at Lubocino was offering satisfactory results, and that in the second half of year PGNiG would have another five horizontals at a depth of 2,000 meters.

"If results are positive, we will be able to burn the gas and produce electricity," he commented.

He said that he hoped that results PGNiG had collected so far would accelerate the company's work and help push the shale gas project forward. "We have to make as many pilot exploration wells as are needed to assess the potential; these are our obligations because we are determined to implement the shale gas exploration program."

Answering a query about ExxonMobil's exit from the Polish market, he said: "Every company that quits must follow the procedure. We have to check what the company did, look at documents and reports form the Mining Authority, that the wells are in the correct condition. We'll be able to get data, and in future will require copies of geological data for the state much earlier as we would like the Geologic Authority to be fully informed about the geologic structure of Poland's basins."

He added, that the current legal regime allowed the company to manage its concession at their discretion. "Even if the reservoir is empty it is the property of the state and must manage it so it's properly used."

He said that such decisions like the one by ExxonMobil were beyond PGNiG's control, commenting, "We regret that ExxonMobil left but will soon find a replacement as these are excellent locations for reservoirs."

Editor's Note: Please see our recent article - Poland: Fracking in Lubicino Delayed