As the US shale revolution continues to transform the country’s energy supply, progress towards establishing whether Europe can follow in North America’s footsteps is at a snail’s pace.
Fracking bans across many EU countries continue, with little sign that heightened concerns about energy security prompted by Russia’s behaviour over gas supplies will prompt a significant reversal in policy EU seeks alternative energy suppliers Special Report Europe strives to wean itself on dependence on Russian gas Several factors conspire to increase fossil fuel use Politics helps drive France’s newfound commitment to renewables EU warms to the potential efficiencies of district heating
Meanwhile, in Poland and the UK – the two countries with plenty of shale resources and clear government support for exploration – there is still no clear evidence that shale gas and liquids can be extracted on commercial terms.
But, despite setbacks and opposition from environmental groups, early stage explorers remain confident they are poised to go some way towards replicating the success of US pioneers in establishing shale gas as a significant energy source in Europe.
Andrew Austin, of IGas Energy, a UK explorer, says his company is to flow-test two wells aimed at demonstrating the commercial potential of the Bowland Basin, which stretches across northern England.
Further work is expected from Cuadrilla Resources, whose appraisal work in east Lancashire was blamed for minor earth tremors and prompted a temporary ban on fracking in 2011.
Mr Austin says: “We know there’s lots of gas there, but we need to know what it takes to make it flow in a commercial operation.”
He believes the investment market could be transformed by successful outcomes from a wave of flow-testing at fracked wells planned across UK sites.
Amid all the hype surrounding the UK’s shale potential, exploration work remains extremely limited.
But Mr Austin says that stake building in acreage positions by Centrica of the UK and Total and GDF Suez of France over the past two years has demonstrated the interest of energy companies in taking early stage positions.
“A lot of areas of interest that are potentially available for licensing are already operated. I think we will see some new entrants and surprising faces,” he adds.
But, in Poland, where fracking tests have been more extensive than in Britain, disappointment in drilling has cast a shadow over the shale exploration sector, which has seen a number of groups abandon the field.
Last month, 3Legs Resources, a London-listed early player in Poland, became the latest to throw in the towel by announcing it would be relinquishing its interests in a concession where it has been partnering US major ConocoPhillips. Altho
bnk............................. from TD investments..Poland stands out as increasingly requiring industry funding to work, in our view. That said, we continue to believe that sourcing such funding should be possible and that the potential to strike a farm-out agreement to fund additional investment in Poland is significantly higher now than prior to the drilling of Gapowo B-1, because of the 1) potential for technical insights from the Gapowo B-1 well that could help optimize future completions; and 2) clarified and attractive fiscal terms in Poland. • Deferring capital spending on projects that could unlock upside potential (and increasing the risk those projects will be lost without spending) has significantly reduced our Fully-risked NAVPS estimate. We are reducing our target price to C$1.50 from C$2.00 but are maintaining our SPECULATIVE BUY rating Read more at http://www.stockhouse.com/companies/bullboard/t.bkx/bnk-petroleum-inc#YwBPsBB0vm6A7w3f.99
lewino well was fracked 3 times so it is now too damaged to drill the horizontal..the next well will use the cellar(part drilled by talisman) on the same pad which Mall1 stated..cost wise you are out massively..the vertical well cost around 10m....so I presume the lateral will be a lot more than this especially if ceramics are used...links
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