3Legs will not pursue claim against ConocoPhillips in Poland

Shale gas drilling in Poland
Source: DollarPhotoClub

3Legs Resources PLC has announced it will not pursue its claim against US oil group ConocoPhillips with regard to joint shale gas exploration project in Poland’s Pomerania region. In September 3Legs made it known that it’s abandoning shale exploration in Poland.

3Legs Resources has decided to waive the claim for a refund of 30 per cent share in Lane Energy – of the value of over $1.6 million – which it transferred to ConocoPhillips. The company decided it would not be able to justify the significant expense that would be involved in bringing arbitration proceedings.

The company also confirmed its shareholders have approved plans to return £15.9 million, or around 18.5 pence per share to investors. Earlier this month, 3Legs said that following the return of capital, it intends to put itself into a members’ voluntary liquidation as soon as possible and by March 31, 2015.

3Legs Resources had stakes in six concessions in the Baltic region. The three western concessions – Daminica, Lebork, and Karwia – belong to Lane Energy Poland. In September 2012, ConocoPhillips took over a 70 per cent stake in Lane Energy, while 3Legs remained the owner of 30 per cent. In September this year, in the face of disappointing results of the Lublewo well, 3Legs decided to enter voluntary liquidation by March 2015. As a result ConocoPhillips will take over the remaining 30 per cent from the British company.

The three eastern concessions (Cedry Wielkie, Stegna, and Godkowo) which belong to the 3Legs subsidiary, Lane Energy Exploration, have already been taken over by the Swedish investor Stena AB.

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