Poland: PGNiG Signs Deals with PGE, Tauron and KGHM for Shale Gas Exploration

January 30, 2012

PGNiG SA has signed three letters of intent for exploration and development of shale gas resources in Poland.

The three separate LOIs have been signed with PGE, Tauron Polska Energia and KGHM. Pursuant to the signed documents, each partner declared its will to conduct joint operations with PGNiG SA at selected locations within the Wejherowo licence held by the Company.

“The signing of letters of intent with such prominent partners as PGE, Tauron and KGHM marks a very important step towards intensification of shale gas exploration in Poland. This is a primary goal for both PGNiG and our future partners. The expected success of these operations will mean primarily cheaper gas for Polish customers and significant improvement in Poland’s energy security. The state budget and budgets of many local governments will benefit from additional revenues, which may be used towards various unmet needs. Another important aspect amid the ongoing crisis is the creation of new jobs,” says Marek Karabuła, Vice-President of PGNiG SA, Petroleum Mining.

According to estimates of the U.S. Energy Information Administration, Poland may hold the largest shale gas reserves in Europe, amounting to more than 5 trillion cubic meters. The Wejherowo licence is one of 15 shale gas exploration licences currently held by PGNiG SA.

PGNiG commenced work in the Wejherowo licence area in 2010. Fracturing operations were performed at the Lubocino-1 well, confirming the presence of large shale gas accumulations.

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LNG World News Staff, January 30, 2012