BNK Petroleum seeking partner for Polish shale exploration

Business handshake
Source: DollarPhotoClub

U.S. oil company BNK Petroleum, which has already spent over $100 million on shale exploration in Poland, and which is intending to continue with reconnaissance drilling in the country in 2015, is currently looking for a partner to share the burden of shale exploration in Poland – the company president, Troy Wagner, revealed to the daily “Rzeczpospolita”.

BNK Petroleum’s strategy implemented in Poland is based on it’s US experience. It includes conducting geological surveys, performing wells, collecting data, and selecting the most promising locations for new drilling. The company has already estimated reserves at their three licenses in Pomerania, however the company refused to disclose the details.

Speaking to “Rzeczpospolita”, Mr Wagner stressed that BNK Petroleum has already invested a little over $100 million (400 million Polish Zloty) in Polish shale but admitted that the size of future investments is dependent on the results yielded by Polish exploration, as well as on access to finance. This, in turn, is tied in with the prices of crude in the world markets. Consequently, Polish exploration work is likely to be adversely affected, causing the pace of drilling to slow down.

Irrespective of the rapidly changing situation in the oil and gas markets, BNK Petroleum is planning to carry out 20 kilometres-worth of seismic imaging and one vertical exploratory shale gas well in the Slupsk licence. The company, however, revealed that since last year it has been searching for a potential partner for the exploration work in Poland. The company admitted to carrying out talks with potential investors, without, however, disclosing any details.

Last year, BNK Petroleum carried out a hydraulic fracturing operation on one of the more promising shale gas wells in Poland – Gapowo, 1A. The results of a flow test yielded an average gas production at the level of 6 to 11 thousand cubic meters. At the time, the company issued a statement saying that within a short space of time the level of gas production reached approximately 28 thousand cubic metres per day. In August, BNK said that these numbers are likely to increase with further recovery of the flowback liquid.

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