PGNiG starts shale exploration in Lublin province, Poland

Polskie Górnictwo Naftowe i Gazownictwo SA (PGNiG) has embarked on the next stage of exploration for shale gas in south-eastern Poland.

Drilling started in the Tomaszów Lubelski licence area in the Province of Lublin on March 26th. The go-ahead was given for the Lubycza Królewska bore hole after geological surveys yielded positive results. The plan is to drill the bore-hole to a depth of 4300 m and analyse test results all the way down to ascertain the volume of shale gas in the Lublin Province.

"Increasing the number of boreholes drilled is the only way to verify the shale gas potential and consequently to start producing the gas instead of talking about it," said Mikolaj Budzanowski, Minister of the State Treasury. "We need to do it as quickly as possible, because shale gas is a chance for less expensive fuel for everyone, a chance for new investments, reduction of the CO₂ emissions and development of the gas market both in Poland and in Central and Eastern Europe."

PGNiG SA has focused on exploring in Poland for conventional and unconventional reserves so as to be able to substantially increase its oil and gas production in the coming years.  Exploration for shale gas has been the company's highest priority. According to the available data, south-eastern Poland is one of the areas where considerable unconventional gas reserves can be expected.

"This is an important moment for PGNiG SA. However, what we need to do first is to revise our data to confirm the actual unconventional gas volumes and to identify those areas where it is worthwhile to concentrate our resources in the following years," said Grazyna Piotrowska-Oliwa, CEO and President of the PGNiG Management Board.

PGNiG SA also holds licences to explore for shale gas in Pomerania province. Work is currently at a most advanced stage in the Wejherowo licence area (the Lubocino-1 well). PGNiG SA started technical shale gas production from the well in September 2011. If all the work planned for the Wejherowo licence area proceeds as scheduled, commercial gas production in this area should be launched in late 2014.

Read the article online at: https://www.worldpipelines.com/business-news/05042012/pgnig-starts-shale-exploration-in-lublin-province-poland/