Sunday, June 20, 2010

First Polish Shale Wells Spud

Last week, English company 3Legs Resources Group announced that it has spud its first well targeting shale gas in Poland.  The Łebień LE1 well, which is operated by its Polish subsidiary Lane Energy in partnership with ConocoPhillips, is the second shale well in Poland.  The first well was drilled a couple of months ago by Polskie Gornictwo Naftowe i Gazownictwo SA (say that ten times fast).  Exxon Mobil, Marathon and Chevron are also poking around.  Specific results for the first well were not published. 

There is some skepticism about the potential for European shale gas because of the geology, the high population density of the target areas and the energy services infrastructure.  But the biggest question is the quality of the resource.  The only way to find out for sure is to start poking some expensive holes in the ground to see if the fuss is worth it.  One article I read suggests that Poland's potential shale gas resource is 47 Tcf.  If that is true and the gas is relatively accessible, the European Shale Gas Boom might be real.

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