3Legs Resources plc ('3Legs' or 'the Company'), an independent oil and gas group focusing on the exploration and development of unconventional oil and gas resources in Poland, announces the following operations update.
Baltic Basin: Lublewo LEP-1ST1H lateral well · The well continues to flow natural gas and light oil in addition to frac fluid; a nitrogen lift was commenced on 20 August. · Over the period from 8 August to 17 September, the well has produced at an average rate of 396 mscf/d natural gas and 157 b/d of light oil. · The well is also continuing to flow back frac fluid and as at 17 September some 26.0% of the total amount of frac fluid originally injected had been recovered. · The well is producing higher amounts of oil than anticipated, whereas natural gas production is lower than had been hoped. · On the basis of the information presently available to it and reviewed with Netherland, Sewell & Associates, the Company does not feel confident that the flow rates from this well are likely to improve to a level that it would consider commercially viable.
Corporate update · The Company has a one-time option to cease participation in activity on its three western Baltic Basin concessions once its net share of expenditure reaches US$19 million; this limit has now been reached. · The Company has concluded that it would be in the best interests of its shareholders to exercise this option, thereby capping its financial liability in relation to the three concessions; it has now exercised this option. · 3Legs estimates that it will have cash resources of approximately £17 million as at the end of September; it is actively considering its options to maximise cash returns to shareholders in the most efficient, timely and cost-effective manner. · A further announcement will be made on 30 September, when the Company's interim results will also be published.
Lublewo LEP-1ST1H well
The Lublewo LEP-1ST1H lateral well is the third and last well in the Company's 2013/14 drilling programme. It is also the third lateral well, and the eighth well in all, to be drilled by 3Legs and ConocoPhillips in Poland's Baltic Basin to date. Located in the Company's high-graded area in the northern part of its three western Baltic Basin concessions, the well was designed to target the Sasino shale formation in an area where it was believed to be most prospective by reason of its thickness, depth and reservoir rock properties. The Company was pleased to report in earlier announcements that the well had been successfully drilled with a 1500 metre lateral section and stimulated with a 25-stage hydraulic fracture stimulation, all executed according to plan. The hydraulic fracture stimulation itself delivered some 7.7 million pounds of high-gr
re entering rawicz in q4..this is a proven gas find from the 70s..flowed at 4mmcfd..oil also flowed..this prospect has 57bcf recoverable..worth in the region of $565.5mill...sle% around $198mill..this is a development field..on the drilling of the first well the Permian will be tested for oil..production next year..links
Things to come with PNR...when they get going that is. And the sooner the better because you need to be an absolute Saint to hold and keep holding Sle. Better be worth it. Still believe the reward will be sweet though. Poland, Morocco, Albania, Barryroe, Spain, France...with a medium/long term view, imo Sle and OF would really need to make it on purpose to fail on all projects.
FX Energy reported good results in Poland, announcing that the Lisewo-2 well has started production at an initial gross rate of over 3 million cubic feet of gas per day (Mmcf/d).
‘The company’s 49% share of this new production represents a 12% increase over the company’s average daily rate of 12.9 Mmcf/d equivalent during the first half of 2014. The Lisewo-2 well was completed in December 2013 and started delivering gas to the Lisewo facility just nine months later, the shortest time for any of the Fences wells to date,’ reads the note released on Monday.
FX Energy, which is also drilling other two wells and completing another site preparation, welcomed the news and reiterated its commitment to Poland. The company intends to continue works at Karmin-1, Baraniec-1 and Angowice-1 wells.
“Our team in Poland has worked hard and creatively in cooperation with the PGNiG team to shorten the time from well completion to first production,” Zbigniew Tatys, Country Manager for FX Energy, commented.
Despite the enthusiasm, FX Energy’s production in Poland decreased over the 12 months to August 2014.
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