19 Jun 2012 07:00
For Immediate Release
19 June 2012
3Legs Resources plc
Corporate and operational update
3Legs Resources plc (the "Company"), an independent oil and gas group focusing on the exploration and development of unconventional oil and gas, announces the following corporate and operational update.
Key points
Baltic Basin concessions
·; Further testing of both Lebien LE-2H and Warblino LE-1H wells is confirmed; lifting operations are due to commence at Warblino LE-1H during July 2012, to be followed immediately afterwards by operations at Lebien LE-2H
·; A contract has been signed with MND Drilling & Services for the drilling of a vertical well on the Lebork concession, with drilling expected to commence by October 2012
·; Phase I of PolandSPAN geological and geophysical research project is continuing
Southern Poland concessions
·; Seismic data acquired on the Company's southern Poland concessions have been processed and are now in the interpretation phase
Personnel changes
·; Consultant geologist Mike Lewis continues in a part time role
·; The Company has appointed Christie Schultz, with a background in unconventional well engineering and completions, as Engineering Manager
Baltic Basin concessions
Following its announcement on 20 March 2012, the Company confirms that it will be conducting further testing of both the Lebien LE-2H and the Warblino LE-1H wells, commencing shortly with Warblino LE-1H. Further testing will involve placing artificial lift equipment in each wellbore to remove more hydraulic frac fluid, with a view to gathering additional data on the properties of the target formations and potentially enabling more gas to flow. Lifting operations on the Warblino LE-1H well are due to commence during July 2012 and testing of the Lebien LE-2H well is due to commence immediately following conclusion of operations at Warblino LE-1H.
The Company is continuing with preparations for the drilling of its fifth well, Strzeszewo LE-1, which is expected to spud by October 2012. The Company's subsidiary Lane Energy Poland Sp z o.o. has now signed a contract with MND Drilling & Services for the drilling of this well.
The Strzeszewo LE-1 well will be located to the north of the Lebien LE-2H well, within the area of the Company's 3D seismic acquisition on the Lebork concession. The well will be drilled initially as a near-vertical well and is expected to be extensively cored and logged for the purposes of analysis. One or more diagnostic fracture injection tests (DFITs) and/or similar tests may also be performed on the well. Subject to the conclusions from the further tests and the vertical well, the Company together with ConocoPhillips will consider a further drilling campaign in 2013.
Phase I of the PolandSPAN geological and geophysical research project is continuing, involving the acquisition of 2,200 km of new 2D seismic data extending from the Baltic Basin in northern Poland through the Podlasie Depression and into the Lublin Basin of eastern Poland. Acquisition of new 2D data in the area of the Company's Baltic Basin concessions is expected to be completed by the end of 2012. Processing of the new 2D data has commenced and is expected to be completed in the second quarter of 2013.
Southern Poland concessions
The Company has completed processing the 2D and 3D seismic data acquired earlier this year and these data are now being interpreted. The Company is investigating the purchase of additional legacy seismic and well data in the area of its concessions and will make a further announcement on its plans for these concessions in due course. These plans may include relinquishing the Dabie-Laski concession, if the Company concludes that there is insufficient evidence to justify drilling a test well on this concession.
Personnel changes
The Company has agreed with Mike Lewis, its consultant geologist, that with effect from 17 June 2012 he will serve on a part time basis. This reflects both the fact that ConocoPhillips will soon be assuming operatorship of the Company's three western Baltic Basin concessions, and Mr. Lewis' desire to spend time pursuing other interests. He will continue to be available to provide technical support to the Company.
The Company continues to hire additional technical personnel and has recently recruited as Engineering Manager Christie Schultz, an unconventional reservoir and completions specialist, who will be based in Houston. Christie Schultz was most recently employed by Anadarko as lead reservoir engineer and as a production engineer, where she worked on fields including the Marcellus and Haynesville shales.
Peter Clutterbuck, Chief Executive of 3Legs Resources,said:
"We are pleased to confirm that we will shortly be conducting further testing of our two existing Baltic Basin horizontal wells Lebien LE-2H and Warblino LE-1H. The testing will enable us to acquire valuable additional data on the performance of these two wells and hence further to advance our play understanding. We are pleased also that preparations are well under way for the drilling of our fifth well in the Baltic Basin, Strzeszewo LE-1. We are planning a full suite of tests and other analysis on this well in order to optimise our understanding of the geology before planning further horizontal wells.
We welcome Christie Schultz into our technical team. Our objective is to continue to build our independent capability as an operator in unconventional oil and gas, and to be able to manage all aspects of current and future oil and gas assets to the highest standards."
For further information contact:
3Legs Resources plc | Tel: | +44 1624 811 611 |
Peter Clutterbuck, Chief Executive Officer | ||
Alexander Fraser, Chief Financial Officer | ||
Jefferies Hoare Govett | Tel: | +44 207 029 8000 |
Simon Hardy | ||
Jamie Buckland | ||
College Hill | Tel: | +44 207 457 2020 |
Nick Elwes | ||
Catherine Maitland |
Notes to Editors
3Legs Resources was established in early 2007 to focus on the exploration and development of unconventional oil and gas resources, with a particular focus on shale gas in Europe. A first mover in Poland, 3Legs Resources has acquired six licences covering approximately 1,084,000 acres (gross) in the onshore Baltic Basin, a region considered to be one of the most promising shale basins in Europe. The Company's primary targets in the Baltic Basin are the organic-rich black shales of the Lower Palaeozoic section. In addition to these assets, the Company holds onshore exploration licences over acreage near Krakow in southern Poland and in Baden-Württemberg in south-west Germany.
The technical information and opinions contained in this announcement have been reviewed by Peter Clutterbuck (MA Honours in Engineering, Cambridge University and former Member of the Board of the Society of Petroleum Engineers in London), Chief Executive Officer of 3Legs Resources plc, who has over 35 years of experience in the oil exploration and production industry. He has consented to the inclusion herein of such technical information and opinions.
www.3legsresources.com