Also, and as I posted the other day, shale drilling and associated costs are dropping rapidly. Plus if there is the capability to stop-start shale wells without compromising the well it makes reacting to market conditions more flexible than conventional. Happy to be corrected. Holding for confirmatory news on Rawicz - come on ! QF
The rate of shale gas exploration is still falling in Poland. As of 1 April 2015, there were 47 active shale gas exploration and/or appraisal concessions awarded to 14 Polish and international concession holders belonging to 13 capital groups. With 11 concessions, PGNiG SA is the leader in terms of concessions held.
Orlen Upstream Sp. z o.o. holds 8 concessions and Lotos Petrobaltic SA 7 of them. All of the latter are offshore concessions.
One concession – "Bytów" held by Indiana Investments Sp. z o.o. (BNK Petroleum Group) – was abandoned last month. The Gapowo B-1 vertical well and its horizontal leg Gapowo B-1A were drilled in that concession. Subsequently, the latter was hydraulically fracture stimulated in July 2014. Nevertheless, as reservoir tests yielded unsatisfactory results the company decided to discontinue its efforts in that location.
There are no new shale gas exploration and/or appraisal concession awarded.
Since 2010, 70 shale gas exploration wells, including 16 directional/horizontal and 54 vertical ones, have been completed in Poland.
The number of wells drilled in particular years best testifies to a decrease in the rate of exploration. This year, only 2 exploratory wells have been completed and none was spud-in by 11 April 2015. For comparison, in the past years the number of wells drilled by 11 April was as follows:
Competitive tender so no guarantee that u will be awarded the licence if there is another tenderer. Usual award will be for ten years, so looks as the major cost will be an one off, so maybe best to factor 4mill euros into your figures for this year, of course could be more or less. Will not know when the annual accounts are published as it's a cost for this year.
The type of licence. The current regime of two separate licences will be replaced by a unitary prospecting and production licence. Companies with existing exploration licences will have to enter into a competitive tender to transfer these into the unitary prospecting and production licence.
Merrill Lynch, however, adhere to the BoA experts that fundamental factors do not justify such a significant increase in the price of oil. The Bank predicts that another decline in oil prices may have a place in the third quarter of the current year, when the season starts in September, survey of refinery installation repair.
Linkies u mentioned that SLE saved 4mill by returning half of their licences, does that mean they have to pay 4mill usufruct fees for the remaining licences and do u know if it's an one off charge or yearly ?
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