By Marynia Kruk

WARSAW--Polish state-controlled natural gas monopoly PGNiG SA (PGN.WA) should redistribute some of its large amount of domestic exploration acreage to other companies that are also exploring for shale gas in Poland, Treasury Minister Mikolaj Budzanowski said Wednesday.

"It's a question of how to mobilize state-owned companies and other firms to achieve the goal [of increasing domestic gas production]," Mr. Budzanowski said. "We have to better manage what we have."

PGNiG has 226 exploration licenses in Poland and "not all of them are adequately managed so there should be a division of these licenses between other companies that are also exploring for shale gas in Poland," he said.

In late August, small independent exploration company San Leon Energy PLC (SLE.LN), said it found conventional oil in an area of western Poland abandoned decades earlier by PGNiG.

The theory that Poland's geology is similar to shale gas formations in the U.S. have drawn entreneurial companies with North American know-how to central Europe's largest country, hoping to replicate the U.S. shale gas boom.

These upstarts are beginning to reveal the shortcomings of slow-moving PGNiG, which has yet to fully shake off the habits of its past as a monopoly founded in a centrally planned economy.

-Write to Marynia Kruk at marynia.kruk@dowjones.com

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