2 Oct 2012 08:39
For Immediate Release
2 October 2012
3Legs Resources plc
Corporate update
3Legs Resources plc (the "Company" and, together with its subsidiaries, the "Group"), an independent oil and gas group focusing on the exploration and development of unconventional oil and gas, announces the following corporate and operational update.
Baltic Basin concessions
As anticipated, ConocoPhillips did not give notice to exercise its option to take a 70% interest in the Group's three eastern Baltic Basin concessions in northern Poland, prior to the expiry of the option on 30 September 2012.
As explained in the Group's interim results released on 27 September 2012, in high-grading its acreage the Group has identified the extensive areas within its Baltic Basin concessions which it considers to be most prospective for further exploration, by reason of the thickness of the target formations and reservoir rock properties. These areas are situated on its western concessions, over which ConocoPhillips had already exercised its option, becoming operator on 14 September 2012. The Group considers that its drilling and seismic operations to date have increased the probability of success in this most prospective acreage, as compared to assessments made at the time of its initial public offering in June 2011.
The Group will be considering its options carefully before engaging in any operations on its eastern concessions.
Operations on its western Baltic Basin concessions are proceeding as previously announced. Testing equipment has been mobilised to the Lebien location, where further testing is due to commence imminently on the Lebien LE-2H horizontal well. Rig mobilization for the Strzeszewo LE-1H vertical well is continuing and the well is expected to spud within the next week.
Peter Clutterbuck, Chief Executive of 3Legs Resources, said:
"ConocoPhillips' decision not to exercise its option on our three eastern Baltic Basin concessions is consistent with our own strategy of high-grading our acreage and focusing our activity on those areas which we believe offer most potential. We are firmly focused on prioritising and further de-risking the considerable areas that offer the most prospectivity in our Baltic Basin acreage, which are situated on our western concessions."
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