TALISMAN Energy, together with San Leon Energy, is planning to drill three wells in northern Poland next year to evaluate potential shale-gas deposits in three large blocks in the Baltic Basin.
Success could help kick off a rush that could lead to Poland becoming a leading supplier of natural gas to Europe – and a direct competitor to Russia.
Poland’s reserves of shale and tight gas may be more than 100trillion cu ft, according to estimates by Advanced Resources International.
Other big names, notably ExxonMobil and Chevron, are also jockeying for position in this potentially massive resource base.
Tony Atherton, Talisman’s manager in Poland, told the Global Shale Gas Summit in Warsaw last month that its farm-in with San Leon is a significant investment and commits the company to drilling a minimum of three wells, and up to six wells on the three San Leon concessions, to prove the shale-gas play in the Baltic Basin covering some 600,000 acres.
San Leon receives a 40% free carry with the arrangement. Under the terms of the farm-in, Talisman will pay San Leon about $1.9million in cash.
Talisman is a leading international shale-gas player and is paying 100% of the cost of a 450km 2D seismic acquisition by Petroleum Geo-Services (PGS).
It is to drill one well per concession to earn 30% interest, drilling at least one 1,000m horizontal, with two optional 500m horizontals proposed.
The company will also have the option to earn an additional 30% interest, with an additional well option per block.