Petroleum Club

8/6/2019 Petroleum Club

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No. 3 Vol. 1, May 2011

PGNiG to apply or fve licenses toexplore shale oil resources in PolandPolands gas monopoly PGNiG will apply or fve licenses to explore potential unconven-tional shale oil resources in Poland, deputy head Marek Karabula said. Te licenses willadd to the shale gas licenses PGNiG already owns, Karabula added. We are preparingfve motions to the Environment Ministry to expand our licenses to include exploration

or shale oil, Reuters quoted Karabula as telling reporters.

Source: Reuters

BNK Petroleums second well at Lebork #1 in Poland begins drillingBNK Petroleum announced that the second well, Lebork #1 on the Slupsk concessionin Poland, began drilling on March 11, 2011. Drilling is anticipated to fnish aroundthe end o April. Te company expects to receive the analysis rom the sidewall corestaken in the Wytowno #1 well in April, ollowing which the designing o the racturestimulation program or the Wytowno #1 well will begin. Te possibility o achievingproject e ciencies by per orming back-to-back racture stimulations on the Lebork #1and the Wytowno #1 wells is currently being evaluated. Te Wytowno #1 and Lebork

#1, wells are being drilled by Saponis Investments Sp z o.o., in which the company hasan indirect 26.67% interest and is the manager.

Source: BNK Petroleum

Shale deposits: ResourcesEurenergy sells concessionsUS frm Resources Eurenergy, which planned to search or gas in the Lublin and Mazoviaregions, has sold its concessions, Puls Biznesu reports. As the daily notes, Mazovia andLublin Energy Resources have decided to sell their eight concessions. Among the buyersare ExxonMobil and Chevron. In the opinion o an anonymous expert quoted in thepaper, Eurenergy Resources gave up the concession because it specialized in searching

or gas in coal seams that are located near the sur ace and was less interested in morecostly gas exploration in shale deposits.

Source: Puls Biznesu

Citigroup lowered rating or PGE to holdCitigroup analysts have lowered their recommendation or PGE (Polish Energy Group)to hold rom buy.

Source: PAP

Treasury Ministry gives Energa green lightto invest in Ostroleka power plant

PGE issues PLN 130 million in bonds

GE Hitachi wants to build nuclear componentsplant in Poland

Green Bear planning to buildwind arm in Opole region

PGE would earn EUR 1 bln rom Polkomtel sale

Kazakhstan privatizing energy frms

Russia wants to expand its solar energy

Ukrainian Na togaz to have IPO in 2013

Polish-American agreement oncooperation in e cient energy

Frances Total to pay $4bln or 12% o Novatek and joins Yamal LNG project

Vatten all examines possibility

o selling Polish assets PGNiG starts negotiations with

Gazprom over gas prices

Gas prices or Ukrainians to rise by 30%

Putin extends Gazprom chie s contract to 2016

Future or Nabucco natural gas pipeline in doubt

PGNiG increases supply o gas to PKN Orlen

Citigroup lowered rating or PGE to hold

Kulczyk starts drilling at Olgovskoye Fieldin Ukraine

Hawkley says production rom Sorochynska Well#201 in Ukraines Dnieper Donets basinprogressing well

TFI KGHM wants to fnance the constructiono a gas block in Blachownia

Belarusian anti-nuclear groups urgegovernment to halt nuclear plans

Tauron Group revenues up 13% in 2010

Warsaw Stock Exchange confrmsstart o talks to acquire TGE

Tauron re utes PGNiG link inVatten all acquisitions

Polish government says it wontalter nuclear plans

Opole plans wind arm

Construction o Belene nuclear planto go ahead: Bulgarian PM says

Headlines


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OBR PR has made an attempt to privitize not once but twice in thepast, only to fnd itsel in the midst o a fasco in which bids mademade by investors were not consistent with the Ministry o Finance.

A company exists belonging to the reasury and can be describedas a diamond in the rough even though its annual turnover is inthe range o 100 mln. PLN. OBR PR S.A.( Research & DevelopmentCentre or the Petroleum Industry S.A./Orodek Badawczo - Ro-zwojowy Przemysu Rafneryjnego S.A.) is the only producer o aviation uel (gasoline) in Central and Eastern Europe, selling itsproducts all over the world. All business planes running on recip-rocating engines in Poland run on uel produced by OBR, as wellas a signifcant amount in Russia, the Balkans, Romania, Austria,Czech, Slovakia, as well as Saudi Arabia, United Emirates, and thePhilippines. Te demand or aviation uel (gasoline) rom OBR willgrow along with the light aircra t market business in Poland, whichis happening at the same speed as Western or Southern Europe,

and the market is about to explode.Petroleum Club Magazine, in an exclusive interview with OBRsnew president o the board, Marcin J. Moskalewicz , discussedthe new move towards privitization, why aviation uel is such a hottopic, and what are the uture plans o OBR PR.PCM: OBR is prepared or privitization. Is this the frst time ithas approached such a notion? Can you give our readers a brie background on yoursel and why you have been appointed as thenew President o the board at OBR PR?Marcin J. Moskalewicz: o answer the frst part o your question,the company has made an attempt to privitize not once but twicein the past, only to fnd itsel in the midst o a fasco in which bidsmade made by investors were not consistant with the Ministry o Finance. Tis brings us to the second part in which as a result o the previous ailed attempts, I have been hired on by the reas-ury Minister as a crisis manager because I believe it is possible through the Ministry o reasury to reach prices that are atleast 10% higher. Te reasury Minister wants to receive as muchas possible or the company, because it believes that the aviation

uel industry in which OBR PR operates in has a good chance o exploding. Previously, I was responsible or, among others, the frstdra t IPO process or PZU, and my experience includes success ulrestructuring and optimization o large companies belonging to thetreasury. I am OBR PRs frst manager with management experience

and my ocus will be mainly on improving the companys fnancialindicators. My immediate plans include reducing costs within thecompany by 15% and increasing sales by 16%.PCM: Despite an impressive position on the market, the companyis struggling with problems and urgently needs and optimizationprogram. What is being currently done to fx this program? Whatother problems is the company aced with?Moskalewicz : At the moment, I am applying a test within thecompany known as private investor, a process where an analysisis conducted on the rate o return on planned investments. - Weare investigating whether the companys capital investment inthe state treasury are made on terms that are also acceptable or

the private investor operating under normal economical marketconditions. A private investor making a capital investment wouldhave taken into account primarily the expected return on investedcapital and the level o investment risk. We approach the companyas i it were our own. Te biggest problem with the company has

so ar been under-investment, both replacement and innovative. -Te Board has already started an investment program worth morethan 9 million PLN, which represents more than 8 percent o OBRsrevenues. We are considering, among others, investments in newcolumns or the production o aviation uel. Te new managementaims to improve proftability o OBR and reorganize the plant so

that it producing a high yield in a relatively short period o time,while taking care o the interests o the team, since the companyis a major employer in Plock.PCM: Please share with our readers a description o the marketyou operate in. What are some o the highlights? What is thecompanys vision?

Moskalewicz: OBR PR produces uels or light aircra t, which in-cludes private planes, light aircra ts and helicopters. Te number o such aircra t in the world is estimated at 313 thousand units, whichrepresents approximately 80 percent o all civil aircra t in service. According to analysts in Western Europe more then 30 thousandsuch aircra ts operate in the sky, and in Eastern Europe nearly 3,000.

Te light aircra t sector is now one o the astest growing sectors o civil aviation in Europe. Te European Parliament has committedits Member States and regional and local authorities to invest inthe modernization and development o small and medium-sizedairports. Tats where the company, based out o Plock, sells its uel.Within the vicinity o Rzeszow and Mielec, the aerospace industryemploys over 20,000 people.

PCM: What about your competition?Moskalewicz : Te two biggest players in the uel market in Poland,PKN Orlen and Lotos produce aviation uel, but jet engines, wheresales volumes are described in million o tonnes. OBR has masteredand success ully developed a niche market or small aircra ts used

or business, which is not worth entering or the large Polish players.PCM: What is your current production and plans or production?Moskalewicz : Regarding the companys production, the mostimportant assortment is the AVGAS 100LL aviation gasoline,B91/115, OBR 91UL, and gasoline or ultralight aircra t OBR85 UL.In 2010, the company produced and sold aviation uel in quantitiesamounting to 11 997 thousand kg. More then 3600 thousand kg

ound itsel in the Polish market, which amounts to 100% o thedomestic market share. Te remaining amount o gasoline - beingabout 8 400 thousand kg - was in export sales.

For 2011, an increase o more than 16% increase in productionand sales o gasoline o aircra t uel is planned as well as a targetto achieve a sales volume o 14 thousand. kg. It is assumed that100% o the domestic market and gain new markets or exportsales as well as a gradual increase in market shares already owned.OBR currently conducts numerous trade negotiations to enhancemarket in export sales.

Marcin J. Moskalewicz, President o OBR PR - THIRD TIMES a CHARM


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PGNiG looking or partners o eringconcessions in return or gas shalePGNiG told newspaper Gazeta Prawna that it is in talks oncooperation with the three British corporations: Centrica, BPand Shell, over an exchange o concessions. Te Polish company

wants to acquire a partner or the possession o a concession toexplore or shale gas. Deputy president Radoslaw Dudzinski saidrecently that the company had conducted a tender procedure andhad suggested potential areas or cooperation and part-ownedconcessions to explore or shale gas. Companies that respondedto the PGNiG proposal o ered their own concessions in exchange.PGNiG may be interested in working with Centrica, which hasinvested in shale gas in the U.S. and produces oil and gas in twoareas o the North Sea: the British continental shel and on theNorwegian Continental Shel .

Source: Gazeta Prawna

Treasury Ministry givesEnerga green light to investin Ostroleka power plantTe Polish treasury said it will not block large investments byGdansk-based Energa. At the December general shareholdersmeeting the treasury blocked an increase in the share capital o Power Ostroleka, which would have been directed at a $6-billion1000 MW coal unit. Te ministry said it would hold o on sucha decision until the company is privatised. In January Energareceived permission to build in Ostroleka. Te company hasalready completed all the necessary permits and a contract withPolskie Sieci Elektroenergetyczne (PSE) operator national networkoperator, which already built transmission lines. Tis year Energaintends to select the general contractor.

Source: Cire.pl

PGE issues PLN 130 million in bondsOn February 28 the Polish energy group PGE issued short-termbonds worth PLN 130 million, which will be directed towardsthe PGE group o companies. Te bonds in the unit were pricedat PLN 99,660.50 with a maturity date o March 28,2011. Teissue is part o PGEs Bond Issue Programme dated May 11, 2009,under which as o February 28, 2011 bonds with a nominal value

o PLN 1.430 billion will have been issued.Source: Cire.pl

GE Hitachi wants to build nuclearcomponents plant in PolandWe want to build a supply chain in Poland that will supply compo-nents, not only or the Polish market but also the markets o otherEU countries, said Danny Roderick, vice president o GE HitachiNuclear Energy, which belongs to a consortium responsible orconstruction projects o nuclear power plants worldwide. Te US-Japanese consortium wants to persuade the Polish government

to ensure Poland is part o wider plans to extend nuclear powerin Europe. Were looking at a location on the Baltic coast, wherethere is access to ports, Roderick said. GE Hitachi estimates thatthe construction o Polish nuclear units will require about 4-5,000workers or about eight years, adding that talks are in progress

with Polska Grupa Energetyczna (PGE) on the technology thatwill be needed in Poland. GE Hitachi o ers two types o reactors: Generation III reactors and generation ABWR type III + ESBWR.Te construction o the frst ABWR reactor type should take 40months. Construction o the other could be shortened. GE isalready building nuclear power stations in Poland, a ter signing

a cooperation agreement with the Gdansk shipyard and Ra ako.It also collaborates with Polish scientists rom the echnical Uni-versity o Gdansk, the West University o echnology, Universityo Szczecin and the Koszalin University o echnology.

Source: Cire.pl

Green Bear planning to buildwind arm in Opole regionSPVs Green Bear Corporation Poland said it intends to build awind arm with a capacity o 87 MW in the Opole region o Lu-brza. Te wind arm will have 29 wind turbines with a capacity

o 3 MW each. Lubrza 304 GB Te local unit o Lubrza with theconcession to actually undertake the work is already working onthe expansion o the project and is in the process o preparinga report assessing the investments impact on the environment.Green Bear Corporation Poland plans to build wind arms witha total capacity o about 500 MW. It is the owner o a 10.8-MWwind arm in Pomerania Lisewo.

Source: Cire.pl

Kazakhstan privatizing energy frmsTe Kazakh government has announced the sale o shares in publiccompanies, including the national provider o energy and a gastrading company. Te frst stake in Kazakhstan Electricity GridOperating will be up or sale frst and later the government plansto sell 5% o state gas company KazMunai National


Russia wants to expandits solar energyTe Russian government has allocated unds or investments andsubsidies or solar projects, according to the DGP, citing Krzyszto Grzybowski, an analyst at Frost & Sullivan, who said that invest-ment in solar technologies will allow Russia to gain access to the

know-how necessary to understand the various elements o thevalue chain o the sector. Te state-created corporation Rusn,which has a research center in Stavropol Krai, wants to build theproject Khevel using concentrated solar power energy to generateelectricity with a capacity o 12.3 MW.


Ukrainian Na togaz tohave IPO in 2013Ukrainian state energy frm Na togaz, the owner o a pipelinenetwork connecting Russias Gazprom to its European markets,

plans to oat its shares on the market around 2013, it has an-nounced. Na togaz carries Russian gas to Europe and buys naturalgas rom Gazprom to resell in Ukraine. It is due to receive $2.75billion in transit ees rom Gazprom this year. Na togaz Chie Executive Yevhen Bakulin told an energy con erence: We are


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planning an IPO so that shares can be reely bought and soldon the market. Tis work should take between a year and ahal and two years. Bakulin also said Na togaz spent $1.5 bil-lion on imports o Russian gas last month, which reached 6.3billion cubic metres.

Source: Reuters

Polish-American agreement oncooperation in e cient energyPolish oreign minister Radoslaw Sikorski met US Deputy EnergySecretary Daniel Ponemanem, ollowed by Polish AmbassadorRobert Kupiecki to the USA to sign a memorandum o under-standing on Polish-American cooperation in the feld o cleanand e cient energy. Te agreement will acil itate cooperationbetween the two countries in the feld o new technologies andtheir implementation, with a ocus on shale gas exploration andnuclear energy. Tis document is a legally binding declaration o

intent only, but the United States has clean energy technology,the extraction o shale gas and nuclear power, and these are thethings that interest us. We hope this will intensi y cooperationin the feld, Sikorski said.

Source: PAP

Frances Total to pay $4bln or 12% o Novatek and joins Yamal LNG project

otal, Europes third-biggest oil company, has agreed to buy12% o OAO Novatek and join the Yamal LNG project to ac-cess reserves in Russias Arctic areas. It is a good deal thathas great potential, Prime Minister Vladimir Putin said at hisresidence near Moscow a ter the heads o otal and Novateksigned accords. otal is paying about $4 billion or the Novatekstake, said Chie Executive O icer Christophe de Margerie.

he French company plans to raise its holding to 19.4% withinthree years, according to a statement . otal will gain access toequity production o 120,000 barrels o oil equivalent a dayand about 1 billion barrels o proved and probable reserves,and appoint a director to Novateks board, the company saidin a statement. otal is also working with OAO Gazprom,Russias gas export monopoly, to develop the Shtokman ield.De Margerie in June urged Putin to keep the Arctic projecton track. Delays have put its irst gas back to 2016 and LNG

to 2017. Shtokman may start in 2018, said Pyotr Sadovnik,deputy head o the subsoil resources agency.

Vatten all examines possibilityo selling Polish assets Vatten all is continuing to examine the possibility o selling itsassets in Poland, according to Rzeczpospolita, which notes thatthe Swedish group holds distribution networks in Upper Silesia,plants in Warsaw and more than an 18%- stake in Enea. Te as-sets are valued around PLN 6 billion. Rzeczpospolita notes that

auron is interested in buying Vatten all Distribution Poland - theoperator o a distribution network in Upper Silesia.

Source: Rzeczpospolita


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Shale Gas Solutions- break ast seriesTe frst in a series o break ast con erencesbranded Shale Gas Solutions was held onthe 20th o April at the Sobanski Palace inWarsaw, Poland. Spearheaded by Jakub Ko-stecki rom the frms New Gas Contractingand EnergyJobsCEE, the series is designed too er real world solutions to unconventionalgas operators and vendors operating in Poland.Legal support or the topic o the day - landtitle and permitting issues - was provided byPiotr Spaczynski rom SSW.Te panelists addressed a lot o the issues ac-ing concession holders, operators and serviceoperators when it comes to acquiring theproper permits and land titles required tooperate in the feld in Poland. Acquiring landtitle and permits through direct negotiationswith landowners proved to be the highlighto the morning.More than 25 o the top people in the sectorcame out or the event, including representa-tives o 8 concession holders and some o thetop vendors in the industry.

Te next break ast will take place in early Juneand will cover permitting issues related toexplosives and hazardous materials. I youreinterested in learning more contact MalgorzataKos ([email protected]) at New Gas Contracting.

Enea share price alls a terTreasury pulls plug on EdF A ter Fridays decision by the reasury Ministry to suspend ex-clusivity in the sale o 51% o power generator Enea to FrancesEdF Eneas share price on the Warsaw bourse ell 6% to PLN 19.78

per unit. Kliszcz Kamil, an analyst at BRE, told Parkiet that theall was probably due to the sale o shares by investors who had

hoped the previous Friday to call in shares rom SMEs. BZ WBKanalyst Pawel Puchalski expects another attempt to sell sharesin Enea in the autumn or winter.


RWE to ollow in ootstepso Vatten all?Industry experts predict that German energy company RWE maywithdraw rom the Polish market, although the company says it

has no plans to divest its Polish assets, as Vatten all is planningto do. Vice president o RWE Poland, Janusz Moroz, told PulsBiznesu that the company is not investing in new capacity in Polandapart rom only in alternative mainly wind-powered energy.


Company Petrolinvest tolook or shale gasPetrolinvest intends to obtain concessions to search or shalegas, Rzeczpospolita reports. Te paper suggest the company

has applied or two licenses or exploration o oil and naturalgas in Warmia and Mazury and also wants to buy another con-cession on the secondary market. Petrolinvest would not itsel undertake oil and gas exploration in Poland and would ocuson providing services to drilling operators. Tomas arnowskio Petrolinvest told the paper that the company is in talks with

American partners and has received proposals or cooperationin the search or shale gas in Poland.


PGNiG to spend PLN5.6 billion in 2011 Vice president o fnance at PGNIG, Slawomir Hinc, has told Parkietthat the company will increase its capex this year by more than10% to PLN 5.6 billion in search or oil and gas domestically andabroad, with spending on exploitation o deposit PLN 2.8 billion.Production rom the Norwegian Skarv, in which PGNiG has an

11.9% stake, starts in August. o date, the Polish company hasinvested $760 million in this project. Extracted annually rom thereservoir will be 400,000 tons o oil and 0.5 billion cubic meters.Hinc also confrmed plans to launch later this year a gas produc-tion trial in Pakistan.

Source: Parkiet


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PGNiG starts negotiations withGazprom over gas pricesPGNiG on March 1, in Moscow began negotiations with Gazpromon the reduction o prices or gas supplied under the Yamal con-tract. Te second round o negotiations were held later in March

in Warsaw, Gazeta Prawna reports. Polish oil and gas companyPGNiG argues that Poland is the ourth largest recipient o Rus-sian gas in the EU and pays more than the French, Czechs and Austrians. Te paper quoted in ormation published by the Rus-sian daily Vedomosti, which shows that Germany pays $271 per1000 cubic meters and Austria pays $304 dollars. For comparison,Poland paid last year $336

Gas prices or Ukrainiansto rise by 30%

Te IMF has agreed to reduce the burden o rising gas prices orUkrainians by hiking prices by 30% instead o 50%. In mid-Aprilgas prices or households will increase by 20% and then in June byabout 10%. In line with the IMF this year, the government hikedprices by 62% and also increased tari s or municipal services.

Source: Gazeta Wyborcza

Putin extends Gazpromchie s contract to 2016Gazprom boss Alexei Miller will stay at his post or the next fveyears, instructed Russian Prime Minister Vladimir Putin. Te Rus-sian press had been speculating that his position was under threatand that he would be replaced. But Putin signed a statement thatby March 22 Gazproms Board o Directors must approve Millersextension or a urther fve years. Te 49-year-old manager hasbeen chairman o the Gazprom board since 2001.


Future or Nabucco naturalgas pipeline in doubtTe development o the Nabucco natural gas pipeline, intendedto reduce the European Unions dependence on Russian energysupplies, aces major challenges that threaten its uture, accordingto analysts and members o the consortium backing the ambi-tious project. Te estimated cost o the 3,300-kilometer-long, or2,050-mile-long, pipeline has ballooned and the consortium is stillstruggling to line up suppliers or Nabucco, which is designed tocarry 31 billion cubic meters, or 1.1 trillion cubic eet, o naturalgas a year rom the Middle East and the Caspian region to marketsin Europe. EU o cials say 2011 is the make-or-break year orthe project. Either it is this year or it is not easible, said Mar-lene Holzner, a spokeswoman or the EU energy commissioner.Nabucco was originally budgeted at 7.9 billion. But accordingto an internal study by BP, it may cost 14 billion to fnish thepipeline. Tat threatens to make the venture unproftable. Nabucco

would carry gas rom the Caspian region and the Middle East,through Bulgaria, Romania and Hungary, to a hub just outside Vienna. From there, the gas would be distributed to customersthroughout the EU. Te consortium o energy companies behindthe project has two options, according to EU o cials and analysts.

One option is to abandon Nabucco a ter nearly a decade o plan-ning and development. Were that to happen, it would mean notonly a missed opportunity to diversi y EU energy supplies, but amajor loss o in uence and prestige or the EU in the increasinglyimportant Caspian region. Te other choice is or Nabucco to bemerged with another pipeline to make it more attractive to inves-

tors, gas suppliers and consumers. Te attention is now on theeconomics o Nabucco, not the political aspects o using Nabuccoto weaken Europes dependence on Russian gas, said Borut Grgic,a senior ellow at the Atlantic Council. Europe relies on our majorsuppliers or its natural gas: Russia, which provides 41%; Norway,which provides 27%; Algeria, 17%; and Nigeria, 5%. Russia is theEUs single most important energy supplier over all, accounting

or more than 25% o the blocs consumption o oil and gas, ac-cording to the European Commission, the EUs executive arm. Tatdependence was underscored when price disputes led Russia tobrie y cut natural gas supplies to Ukraine in 2006 and to Belarusin 2009. Tat led to serious shortages in parts o Eastern Europe,and spurred the European Union to step up its e orts to securealternative supplies o energy. Te consortium behind Nabuccocomprises many o Europes largest energy companies: RWE o Germany; OMV o Austria; MOL o Hungary; Botas o urkey;Bulgaria Energy Holding o Bulgaria; and ransgaz o Romania.With Bulgaria and Romania still grappling with the impact o the global economic crisis, it is ar rom certain i their state-runenergy companies could a ord a bigger investment in Nabucco.I do not know how the Nabucco consortium arrived at the 7.9billion fgure in the frst place. I could never see it costing less than12 billion, said Jonathan Stern, director o gas research at theOx ord Institute or Energy Studies. And consider the price o iron ore, which is used or steel pipelines. It has risen by 50% over

the past year. In Vienna, where Nabucco is based, a spokesmanplayed down BPs 14 billion cost estimate. He also discountedthe possibility that the start o construction would be delayed.Te current fgure o 7.9 billion is based on the Nabucco easibilitystudy which was completed in 2005, said Christian Dolezal, theNabucco spokesman. Tese fgures are currently under review. Any other fgures released in the meantime are speculations andnot accurate. We do not have an investment issue, there ore nodelay. Johannes Vetter, a spokesman or MOL, said there wereno fnal numbers on the table, adding, We will know in a ewweeks i there will be delays. Even i the pipeline is completed,there is the issue o fnding natural gas to fll it. Te consortium

has been banking on Azerbaijan, which has vast reserves o gas.But those felds have not yet been developed. BP is the projectoperator o the Shah Deniz II feld in Azerbaijan, and holds a25-percent stake in it. For months, Nabucco has been negotiatingto obtain gas rom the Shah Deniz II feld. But the Azeri govern-ment has yet to decide whether it will sell gas to Nabucco or tosome other pipeline operator. Elshad Nasirov, vice president o Socar, Azerbaijans state-owned oil and natural gas company, saidrecently that Shah Deniz II could only guarantee 10 billion cubicmeters o gas or export, less than one-third o Nabuccos capacity.We do not promise additional gas, he said. Everything dependson the price. Te EU is now lobbying or Nabucco to merge withone o the other projects. Joschka Fischer, the ormer German

oreign minister and now consultant or RWE, proposed during ameeting o energy experts in Vienna last month that the SouthernEuropean pipeline projects should be integrated. It would makesense, Fischer said. Business interests would be brought together,but above all it would allow Europe to diversi y. ogether, the


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three pipelines would be able to supply Europe with about 53billion cubic meters o gas a year. Nabucco confrmed that talkswere taking place. We understand that there is a discussion ona political level, said Dolezal, the Nabucco spokesman. But, headded, Nabucco can be realized and stand alone.

Source: The New York Times

PGNiG increases supplyo gas to PKN OrlenPolish oil and gas company PGNiG has li ted the restrictions on itsnatural gas supplies to PKN Orlen that were introduced on March2 due to persistent low temperatures and increasing consumerdemand or natural gas. Te decision was taken on the basis o theexisting commercial contracts between the companies, providingthe opportunity to reduce supply.

Source: Cire.pl

Kulczyk starts drilling atOlgovskoye Field in UkraineKulczyk Oil Ventures has announced that the O-9 well in theOlgovskoye Field commenced drilling on the March 5, 2011.Te drilling o the O-9 well is expected to take about 35 days.Te O-9 well is located approximately 1.2 kilometres to thenorthwest o the O-8 well, will be drilled to a depth o 2,600metres and is designed to test gas-bearing reservoirs in the LowerBashkirian and urther develop the gas production capability o the Olgovskoye Field. Te O-9 well is the second new well drilledin the Olgovskoye feld since the company acquired its interestin KUB-Gas in June 2010. It is part o a larger developmentprogram on the KUB-Gas assets through 2011.

Olgovskoye Field

With the success ul tie-in o the O-7 well in late 2010, the Olgo-vskoye Field now produces rom 4 wells (O-3, O-4, O-5 and O-7)with each well producing rom a separate horizon. Kulczyk Oilcompleted drilling o the Olgovskoye-8 well in early Januaryand the well is awaiting testing and tie-in as a producing gaswell. Te O-8 well was drilled to a total depth ( D) o 2,780metres and wireline logging o the open hole identifed multiplepotential hydrocarbon-bearing zones. Te O-8 well was casedto D in preparation or completion as a producing gas wel l. Aservice rig is currently on the O-8 location and the completiono the well will commence shortly. In ormation about the O-8well was disclosed on February 3, 2011.

Update on M-19 well

Te recently drilled M-19 well in the Makeevskoye Field hasbeen tested at 5 million cubic eet per day (MMc /d) o naturalgas with an estimated our barrels per MMc o condensate andno water. Te well owed at a stabilized owing pressure o 1,700 psig through a 10 mm choke over a seven hour period.Regular production o the M-19 well is expected to commencelate in the second quarter o 2011 a ter all necessary regula-tory consents have been received and the pipeline connection

to the KUB-Gas production acility has been completed. Tewell is expected to produce between 3 and 3.5 MMc /d (2.1 to2.45 MMc /d net to the 70% Kulczyk Oil interest in KUB-Gas).Current KUB-Gas production is approximately 6 MMc /d (4.2MMc /d net to KOV).

Kulczyk Oil is very pleased with the results o work done on theKUB-Gas assets since the acquisition in June 2010. Te workprogram or 2011 will pr incipally target the comprehensiveand e cient exploitation o the Olgovskoye and MakeeevskoyeFields. Tis will involve the drilling o new wells, the completiono new zones in existing wells, dual completions, stimulation

treatments using modern and technically advanced methodscommonly used elsewhere in the world and the e ective im-plementation o a compression strategy.

Source: Kulczyk Oil Ventures

Hawkley says productionrom Sorochynska Well #201

in Ukraines Dnieper Donetsbasin progressing wellHawkley Oil and Gas announced that commercial production

rom the Sorochynska Well #201 in Ukraines Dnieper Donetsbasin is progressing well and the company has received its

irst revenues rom gas sales. During the production start-upperiod, optimisation o the processing equipment to yield themaximum gas and liquids rom the well, will be determined.Production commenced on February 17th with the well run-ning on a 6mm choke producing low rates o 5.29 millioncubic eet per day (mmc pd) and 176 barrels o condensate perday. he data rom the well-including a well head pressure o a constant 3,750PSI indicates that once Hawkley achievesthe optimal con iguration o the processing equipment, asubstantial increase in the low rate through a larger choke isexpected. Hawkley is selling gas at a gross price o US$ 9.32 per

thousand cubic eet (mc ). Liquids are currently being sold at aUS$ 104 per barrel. otal operating costs including productiontaxes, gas and liquids processing costs, transportation costsand overheads run at around 30-33% o revenue. Initially gaswill be sold orward on the local market, on a monthly basis.Condensate is currently being sold every three days, also on thelocal market. Following the completion o the start up phase,the company will consider a longer term o -take contract. ASX traded Hawkley expects Well #201 is expected to gener-ate signi icant cash low, with Chie Executive O icer RichardReavley commenting that per ormance so ar indicates the wellwill be able to run at rates much higher than the initial rate. he new processing equipment we have installed at the localgas plant has integrated well with the existing acilities andearly analysis o the gas and liquids and the reservoir data lookshighly promising, Reavley said. We expect to have the wellproducing around twice what we are seeing at the moment inthe very near uture.

Source: Hawkley Oil & Gas Limited

KGHM TFI wants to fnancethe construction o a gasblock in BlachowniaCopper investment company KGHM FI has announced it willfnance investments in auron power plants construction o anew block at Blachownia, Puls Biznesu reports. Arkadiusz Gieralt,deputy president o KGHM FI, said the und would cover fnancingo the estimated PLN-1.1 billion cost or the Blachownia project.KGHM wants to create a special und rom pension unds or this


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Market reportsPetroleum Club Magazine is continuously working with our information partners to provideyou with as much in-depth knowledge into specific markets and sectors. Below is some brief information about this months latest reports. For more information on purchasing the fullversion please contact [email protected]

Bulgarian shale gas report Bulgaria has recently seen its share o publicity with regard to shale gas potential. Te truth is that shalegas development has not matched the pace o Poland or arguably Ukraine. Worse, a major confrma-tion o mineable deposits in either country could prompt a battle o costs and pragmatism that coulde ectively see Bulgaria le t out in the cold. Nevertheless, shale gas potential has prompted politicaldebate, rumblings rom Russian Gazprom and even pointed lobbying by U.S. Ambassador to Sofa,James Warlik. Tis report serves as both a primer or those researching Bulgarian shale gas potential,as well as a commentary on the shale gas race that could a ect all Central European countries in thenear uture.

History and geopolitics in Polish shale gasTe shale gas boom may be on in Central Europe, but a number o actors should give cause or a re-think, i not a pro ound change in strategy with regard to the uture o what has been pitched as theultimate game changer not just or Poland, but or the region. In the ollowing report, CEE ConsultingGroup takes a provocative look at the current Polish governments relations with U.S. o cials on bothgas and international issues, the somewhat schizophrenic take on shale gas development and the realbarriers acing shale gas in the near- and mid-term.

Environmental lobby (Poland) At present the main environmental concerns in Poland are not up to speed on the potential shale galethat could swarm on Poland and the wider CEE region. However, with increased media exposure, theyare slowly but surely getting their act together. In this report, we give a ull up-to-date briefng on themain environmental organizations in Poland and what their current positions on shale gas. Te reportwill point who are the organizations that a company should be wary o , and who a company operationin Poland may potentially co-operate with.

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project. Ra al Markiewicz, manager o Generali OFE, told PB hewas sceptical about the idea.


Belarusian anti-nuclear groups urge

government to halt nuclear plansBelarusian anti-nuclear groups have urged the government tolearn rom the tragedy in Japan and relinquish plans to builda nuclear power plant in the country, opposition Swaboda Radioreported. We call upon the Belarusian authorities to desist romplans to build a nuclear power plant and seek investment or themodernization o traditional energy and renewable energy de-velopment, an unnamed source said. We want to remind themthat the hasty development o design documentation blocks inChernobyl was one o the causes o the disaster. Belarus andRussia have prepared a preliminary agreement to build a nuclearpower plant and at the same time Belarus is seeking a loan rom

Russia o $9 billion.Source: PAP

Tauron Group revenuesup 13% in 2010Polish power company aurons revenues increased last year bynearly 13% to more than PLN 15.4 billion, with an EBI DA upalmost 5% to PLN 2.8 billion. Te auron Group reported in 2010revenues o PLN 15.4 billion mainly the e ect o growth in thevolume o energy generated and sold, as well as revenues rom itsdistribution and sale o heat. Last year the group noted growingdemand or energy resulting in an increase in volumes produced,distributed and sold. A signifcant proportion o demand met byits own sources; 21.3 Wh produced by the manu acturing seg-ment in 2010, 14.4% more than a year earlier, o which 1.1 Whis energy produced rom renewable sources, where volume growthwas 12.7% year-on-year.


Warsaw Stock Exchange confrmsstart o talks to acquire TGEStock Exchange President Ludwik Sobolewski told Puls Biznesuthat initial talks about the acquisition o the Polish Power Ex-change were being conducted, adding that the exchange is worthabout PLN 300 mln.


Tauron re utes PGNiG link inVatten all acquisitionsGazeta Prawna reports that the Polish power group auron isinterested in purchasing the Polish assets o Vatten all, butcontrary to earlier announcements, will not submit a bid jointlywith PGNiG, aurons deputy chie Krzyszto Zawadzki said.PGNiG is interested in purchasing only Vatten all Heat Poland.

Others interested include PGE and Finnish Fortum, the paperreports, adding that Vatten all has not started any sales processyet. Zawadzki said he expected Vatten all to start selling at thebeginning o April.


Polish government says itwont alter nuclear plansTe Polish government spokesman Pawel Gras confrmed thatPoland will not be reviewing plans or the construction o thecountrys frst nuclear power plant. He said that security will be

one o the main criteria taken into consideration when choosingtechnology. Te Ministry o Economy says construction will beginin 2016, and when completed the plant should have an estimated2020-3000 MW generating capacity. Te end o 2013 is expectedto see a decision on location o the plant.


Opole plans wind arm A wind arm is planned or the municipality o Zdzieszowice, with

unds coming rom Poland Electrawinds Belgian, which has or thelast two years been seeking to build a wind arm in Poland. Te

acilities will be in Krepna on Oder, and should have our to sixturbines a ter three years. We have to establish the conditions orconnection to the network and are now just waiting or the adoptiono the municipal zoning plan, Electrawinds Poland CEO told PB.


Construction o Belene nuclear planto go ahead: Bulgarian PM saysBulgaria does not intend to abandon plans to build new nuclearreactors and sees no need to slowdown work on its second powerplant, Belene. Its builders, the Russian company Atomenergoprom,said they will provide give additional security. Te tragedy in Ja-pan will not become a reason to cancel the power plant at Belene,Prime Minister Boyko Borisov said. Te Minister o Economyand Energy rajczo rajkow did not rule out a slowdown to theBelene project

Source: PAP

Belarus reezes Kulczyk Holdingspower plant construction projectBelarus has rozen construction o a power plant in the country byKulczyk Holding (KH), which the daily Gazeta Wyborcza reportsis now increasing disinterest in the investment. KH signed an

agreement regarding the construction o a power plant with asubsidiary o state-owned Bielenergo in August last year in Warsaw.Te reason or the Belarusian decision is reportedly the recentcooling o Polish-Belarusian relations a ter the post-Decembercrackdown and alleged Polish support or the opposition. KHplanned a PLN 1.5 billion coal-fred power plant with a capacityo 1,000 MW in Zelwa located approximately 70 kilometres romthe Polish border. Hal o the energy produced by the plant wasto be delivered to the Polish market and hal to Belarus.


Hungarys MOLs interestedin Polands LotosHungarian oil and gas company MOL is interested in buying a 53.2%share in the Polish oil group Lotos, two people amiliar with thematter told Dow Jones Newswires. Also reportedly interested are


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Russias OAO Gazprom Ne t and NK-BP Holdings, Polish companyPGNiG and several private equity unds. Investors have until April29 to submit applications to the reasury, and the ministry thenhas until May 13 to make its decision. Grupa Lotos is the secondlargest - a ter PKN Orlen - uel producer in the country. Te treasuryholds a controlling stake in the company based in Gdansk, with 53%.

Source: Dow Jones Newswires

Polands Treasury Ministry completestalks with Ra ako over ZE PAK salePolands reasury Ministry has said it has completed negotiationswith Ra ako over the sale o power generator ZE PAK, althoughSolorz-Zak is reportedly dictating terms. Te reasury wants to

oat PAK on the stock market and I reportedly concerned i thecompanys mining assets may not discourage Solorz. PAK and itsmines need huge investments to continue to operate. Last week, the

reasury decided to complete the privatization process o Ptnw-

Adams-Konin and two brown coal mines, Adams and Konin.Source: CIRE.pl

PGNiG may start extraction o shale gas as soon as 2014Polish daily Rzeczpospolita reports that Polish oil and gas com-pany PGNiG may start extraction o shale gas as soon as 2014.PGNiG, which recently concluded its frst success ul drilling orshale gas near Wejherowo, plans to spend the next ew months o testing the outcome o this exploration, according to its deputyhead Marek Karabula. Meanwhile, other drilling exercises willbe carried out their e ects should be known within two years.I they prove success ul, PGNiG could start the production o shale in three years, Karabula stressed. Experts have estimatedthat the extraction o unconventional gas could start only inseven to eight years. Karabula said that according to the modelassumptions, the Wejherowo concession could produce 300mncu.m. o gas annually (Polands annual consumption is around14bn cu.m.).

Source: GoWarsaw

PGE to invest over PLN5 billion in 2011Polish energy company PGE invested PLN 5.3 billion in 2010, mainlyin conventional energy (PLN 3.8 billion) and distribution (PLN 1billion) and plans to increase investment activity in 2011 to overPLN 5 billion. Te company aims to build a new unit, althoughcommissioning o the installation has been suspended or a ewmonths due to de ects caused by the contractor. PGE also wants tocontinue urther investment in the mining sector and plans this yearto continue research on uidized gas at Zoczew. Te company alsohas permission to study more distant in time longer-term depositso Gubin. Te coming weeks are expected to see the company unveilits new strategy, with 100 MW o wind energy turbine reportedlyhigh on the agenda. Te company said in a statement that plans

to grow both through acquisitions and organically.Source: Gazeta Wyborcza

Gazprom and SloveniasGeopolin Plinovodi agree to

orm JV in support o SouthStream gas pipelineGazprom and Slovenian gas distributor Geopolin Plinovodi haveagreed to orm a venture in support o the South Stream gaspipeline. I am sure this project will bring a certain beneft to allparticipants and will ensure reliable energy supplies in Sloveniaand other European countries, Russian Prime Minister VladimirPutin said in Ljubljana. Te parties, which will each hold 50% o theventure, will have to seek an exemption rom the European Unionsdirective on the segregation o gas suppliers and pipeline operators.Putin held talks with Slovenian o cials, including Slovenian PrimeMinister Borut Pahor, to assure them that the pipeline is on track

ollowing comments by Russian deputy prime minister and EnergyMinister Igor Sechin last week that indicated that Russia could dropSouth Stream altogether. He made the comments a ter Putin again

oated the idea o building liquefed natural gas terminals on theBlack Sea to supplement the underwater pipeline, which analystssaid con icted with the purpose o the pipeline project. Putin saidalthough Russia is currently studying di erent versions o thepipeline construction but nothing will stop us rom carrying outthe South Stream project. South Stream was originally promotedas an easy way to export gas across the region bypassing the busyBosporus straits, while ships carrying Russian liquefed naturalgas would congest the strait. Some analysts believe the LNG ideawas a way o putting pressure on urkey to support South Streambecause the transport by ships would sideline urkey rom theproject. We do not think that there is any threat to this project

rom our urkish partners, Putin said. Slovenia, which buys about600 million cubic meters o gas a year rom Gazprom, was amongthe Balkan countries whose supplies were disrupted during a gasdispute between Russia and Ukraine

Source: Bloomberg

KGHM buys shares in MSP TauronKGHM on March 23 bought 71 million shares in auron PolishEnergy in the treasurys surprise oatation, paying PLN 6.15 perunit, the company said in a statement. As a result, KGHM increasedits share to 10.39%. Te acquisition o shares in auron PolandEnergy is related to the implementation o the KGHM Polish Cop-pers strategy or 2009 - 2018, which provides or diversifcationo income sources and the entry into the power sector, the reportsaid. KGHM Polish Copper in June bought 4.9% o the originalo er o shares in Poland auron Energy.

KGHM will continue to buyTauron, not interested in ZE PAKKGHM President Herbert Wirth has told PAP that KGHM willcontinue to buy shares in auron in order to increase its stake to11.32%, but is not interested in buying shares in ZE PAK. au-ron is our natural partner in power, he said. President o Enea,Matthew Shepard, said he had not ruled out the company takingpart in Patnow-Adams-Konin a big power generating company inPoland, sometimes called ZE PAK, up or sale, most likely this year.

Source: PAP


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Enea wants to take over EC Bialystok Enea reportedly wants to take control o CHP, ElektrocieplowniaBialystok, adding to the 30% it bought in December 2008 romthe treasury. Germanys E.ON plans to sell the remaining shares,which it acquired rom French SNE , a strategic investor in the

plant. Puls Biznesu reports that Enea has reached the due diligencestage. Te takeover may go ahead in May. Te value o a 70% stakein EC Bialystok is estimated at over PLN 400 million.


PGE to have wind arms witha capacity o 1,000 MW by 2015Polish energy group PGE aims by 2012 to have wind arms witha capacity o 250 MW and 1,000MW by 2015 and will spend overPLN 400 mln to achieve this.

Source: Parkiet

Poles divided on nuclear power plant48% o Poles are opposed to the construction o a nuclear powerplant in Poland, according to a poll by NS OBOP or public televi-sion programme Forum. 46% believe nuclear power should beused in Poland, with 6% not having an opinion. Te governmentplans the frst reactor in the country to begin by the end o 2020and to have two power plants with total capacity o 6,000 MWby 2030. Prime Minister Donald usk said that the constructiono a nuclear power plant in Poland should be accepted by society[because] without social acceptance o this kind it [the plan] doesnot make sense. He did not rule out a re erendum on the plans.

NS OBOP conducted a telephone survey on March 23-24 on arepresentative sample o 1,000 adult Poles.


Polish PM Tusk talks o Polandmoving towards greaterenergy independence At a ceremony held in Swinoujscie on Polands Baltic coast to lay thecornerstone o the uture liquefed natural gas terminal, Polish PrimeMinister Donald usk spoke o the nation moving towards greaterenergy independence. Poland will be a country secure in terms o

gas supplies and a country able to trade it in case o surpluses, saidusk. aking into consideration Polish natural gas deposits, the

long-term contract with Russia, the long-term contract with Qatarand the in rastructure, investments in gas pipelines and intercon-nectors, as well as the increasingly intensive and promising searcho shale gas, we can believe that during the next three, thirteen oreven thirty years Poland will not be a gas giant but a country securein terms o gas supplies the PM said. Te LNG terminal is a keyelement o a set o investments and economic, fnancial and politi-cal projects which are aimed at establishing Polands and Europesenergy security. Te Swinoujscie liquefed natural gas terminal isexpected to cost some PLN 3 billion. Construction should be com-

pleted in 2013, with the terminal expected to be ully operationalin June 30, 2014.

Source: wnp.pl

Over a dozen companiesplace bids or Warsaw heatand power plant SPECOver a dozen companies Polish and oreign - have placed bids orWarsaw heat and power plant SPEC and a decision will be made on April 20 as to who will be invited to the next phase - due diligence.Up to 85% o SPEC will be sold. We are pleased with the stronginterest o investors in purchasing shares o SPEC SA. Competitionbetween potential buyers should make it easier to negotiate thebest trading conditions under which the fnal decision is taken,vice president o communications at SPEC, Jaroslaw Kochaniak,said. Te book value o SPEC is estimated at about PLN 1.5 bil-lion and the Warsaw Citys 2011 budget estimated it will get PLN750 million rom the sale. SPEC is a leading provider o heat inPoland, providing about 80% o the Polish capitals heating needs.

Source: PAP

Choice o investor or LotosGroup seen at end-2011Te selection o a strategic investor or Lotos Group is planned orthe turn o 2011/2012, reasury Minister Aleksander Grad said,adding that the investor must o er to buy the entire package o 53.19% in a single tranche. Grad said the reasury wants to sellto a single Source: ISB


Ukraine and Eni to cooperatein traditional and alternativeenergy productionUkraine and Eni SpA have reached an agreement to cooperate intraditional and alternative energy production. A Ukrainian gov-ernment statement announced the memorandum o cooperationduring a meeting between the Ukrainian Minister or Ecology andNatural Resources Mykola Zlochevskiy and Eni Director GeneralPaolo Scaroni. Te company and the ministry have agreed oncooperation aimed at studying joint initiatives in the sphere o traditional and alternative gas and oil resources based on theexchange o in ormation, experience and technologies, said thestatement, published on the Ukrainian governments website.

Ukraine has been studying the possibilities o developing its shalegas resources, which are believed to be amongst the largest in EuropeSource: RIA Novosti

Vatten all launches saleso its Polish assetsWyborcza.biz reports that Swedens Vatten all has o cially begun theprocess o selling its Polish assets. A person close to the transactiontold the paper that Vatten all is in contacts with potential investors.


Zeta Petroleum to start work atRomanian natural gas feld BobocuZeta Petroleum plans to start work on the Romanian natural gasfeld Bobocu, in Buzau County. Its partner company, Cooper Energy,


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will invest a minimum o US$16 million in the frst developmentphase o the natural gas feld. Zeta signed a concession agreementwith the National Agency o Minerals and Resources in Romaniain 2007 or the Bobocu feld. Zeta was granted an enlargement o the Bobocu concession in 2008. Te Bobocu concession containsa mature biogenic gas feld that Zeta intends to bring back into

production by drilling new development wells and, where possible,working over existing wells. Romgaz discovered the Bobocu gasfeld in 1966. It was placed on production in 1977 but was aban-doned in 1995 due to problems o sand in ux in well boreholes

rom producing reservoirs. Zeta is now working towards drillinga new well in the feld in Q4 2011, according to company data.

Source: Romania Business Insider

MSP losing patiencewith EDF over EneaNegotiations on the sale o shares in Polish (Poznan-based)

power generator Enea is not likely to be extended a ter thedeadline expired at the end o March, Rzeczpospolita reports,claiming that a person close to the transaction says the Frenchconglomerate has set an ultimatum demanding an end to talksby the end o March. reasury Minister Aleksander Grad hassaid that i it were necessary the deadline may be extended.


Wind arm to be built nearSlupsk KobylnicaPuls Biznesu reports that a wind arm will be built the nearSlupsk, at Kobylnica, consisting o 18 turbines with a totalcapacity o over 41 MW. Te arms investor - Eco Energy, aSpanish company, part o the aiga Mistral Group - is slatedto start work in late 2011 and 2012. Siemens is the supplier o the wind turbines.


Kulczyk Investments back inthe race to buy 51% o Enea?President o Kulczyk Investments Darius Mioduski in an in-terview with Rzeczpospolita published on Monday said hiscompany would strive to renew negotiations with the reasuryMinistry over purchase o a 51% stake in power generator Eneaa ter the reasury last Friday March 31 issued a statement o -fcially announcing it had suspended talks with Frrances EdF.Te ministry s statement says EdFs o er ailed to meet theconditions placed on potential investors. Mioduski told the dailythat his company had met all the requirements set by reasury

Minister Aleksander Grad, o ering a signifcant premium orcontrol over Enea and would not need any external fnancingto undertake the purchase.


San Leon Energy provides update onits exploration activities in PolandTe acquisition o 60 sqkm o 3D seismic data over SzczecinekBlock 106 (San Leon 50%) was completed by the end o Janu-ary 2011. Data processing was concluded on 15 March 2011and interpretation is now expected to be completed by earlyJune 2011; with an exploration well planned or Q3 2011. Teseismic company, Geofzyka Krakow, is currently acquiring 480km o 2D seismic data over San Leons Gdansk W Concession inthe Baltic Basin. Te programme is expected to be fnalized bymid April 2011. Geofzyka Krakow will deploy a second seismiccrew or the Braniewo and Szczawno Concessions at the end o

March 2011. Te entire seismic programme is expected to becompleted by June 2011. Seismic processing is being carriedout in real-time to select fnal drilling locations or the upcom-ing three well drilling programme. Te ull 480 km 2D seismicprogramme is 50% complete and a drilling rig has been booked

or 1 August 2011, which will be used to drill three back-to-backwells. Geofzyka Krakow has also been contracted to acquire100 km o 2D seismic over the Companys 100% owned NidaConcession, which is on trend with some o Polands largest oilfelds. Te acquisition o this seismic is planned to commenceat the end o March be ore drilling locations are fnalised or anupcoming drilling programme. Up to three wells will be drilled,with an expected start date by end o June 2011. San Leon hasawarded Hungarian company, Acoustic Geophysical, with thecontract to acquire 165 sqkm o 3D seismic data over the Com-panys Nowa Sol Concession. Te 3D seismic programme, whichis expected to commence in May 2011, is targeting numerousprospects and leads along the southern Fore Sudetic Monoclineo the Permian Basin. Tis survey is designed to support an up-coming drilling campaign in the Nowa Sol Concession which iscurrently planned to start in Q4 2011. Work is continuing in theCarboni erous shale play across the Wschowa, Gora, Winsko andRawicz Concessions, which cover 880,000 acres. Core analysisand interpretation o historical seismic data is being carriedout. Te seismic programme across this acreage is scheduled to

commence in Q3 2011. San Leon also provided an update onits other activities, including the ar aya Oil Shale project inMorocco where its pilot project is well advanced. Te drillingo two wells (one injector and one producer) began last weekand frst results are expected towards the end o next month.

Source: San Leon Energy

Petroleum Club Magazine May 2011 Volume 1 No.3Published by ECE Media,ul. Lucka 15 of ce 313, 00-842, Warsaw, Poland, tel+48 604 144 769, Fax: +48 586 30 10

www.petroleumclubmagazine.com, In partnership with Energy Recruitment Institute www.energyrecruitmentcee.comPublisher - Craig Smith, e-mail: [email protected], tel: +48 604 144 769Editorial & Research Director - Jo Harper, [email protected] Director - Krzysztof Cichy, [email protected]

Journalists and Contributors - Jakub Kostecki, Katarzyna Kajka, Jakub ZlamaniecCopy editor - Matthew Day


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