UK-listed independent 3Legs Resources has decided to give up one of its Polish shale gas exploration licenses, the Dabie-Laski concession, because of a lack of potential, the company said Monday.
3Legs is also considering its options for two other concessions in southern Poland -- Bytom-Gliwice and Glinica-Psary -- as the disappointing results from shale exploration continue to affect corporate decision-making.
Earlier this year, ExxonMobil decided to give up on its Polish shale gas exploration activities.
3Legs, which, in partnership with ConocoPhillips, was the first company to use hydraulic fracturing in Poland, said it would focus on its licenses in the north of the country.
"Relinquishing the Dabie-Laski concession is consistent with our strategy of high-grading our exploration opportunities and focusing our activity on those areas which we believe offer most potential," CEO Peter Clutterbuck said in a statement.
"We continue to evaluate new exploration opportunities, which are capable of complementing our primary project in Poland's Baltic Basin," he said.
3Legs completed interpreting the 2-D and 3-D seismic data acquired and processed earlier this year on its three southern Poland concessions, and has also acquired additional legacy seismic and well data in the area.
"Following a review of the seismic and well data in its possession the company has concluded, as it had already contemplated doing, that it has insufficient data to justify drilling a vertical test well on its Dabie-Laski concession within the time frame specified in its license," it said. "The company will therefore relinquish the concession."
The Dabie-Laski concession covers 895 sq km (221,000 acres), gross and net. Bytom-Gliwice and Glinica-Psary cover 584 sq km and 1,038 sq km, respectively.
3Legs said it was continuing to consider its options for its Bytom-Gliwice and Glinica-Psary concessions, the location for the 50 sq km of 3-D seismic data acquired earlier this year.
The company has an obligation under its license terms to drill one vertical well on each of these two concessions by August 2013, or relinquish them.
