Corporate and Operational Update (6215F)
June 19 2012 - 2:00AM
UK Regulatory
TIDM3LEG
RNS Number : 6215F
3Legs Resources plc
19 June 2012
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-Wurttemberg 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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