Oz Junior Backs out of Polish Tight Oil, Gas Project
Sydney-listed Ansila Energy has ditched plans to develop an unconventional oil and gas project in Poland's Permian basin, it said in a stock exchange filing on March 19.
Ansila, formerly known as Pura Vida Energy, closed a deal with UK-based Gemini Resources in September to acquire 35% stakes in the Gora and Nowa Sola concessions, pledging to spend A$6.15mn ($4.2mn) on development work. It has now said it will withdraw from the Nowa Sola project, where it had intended to fund a A$2.24mn well work programme. Its interest in the concession will return to Gemini.
"Given the market turmoil surrounding the global Covid-19 (coronavirus) outbreak and the material weakening in the oil price, investor support for the risks associated with exposure to unconventional oil projects in the current economic climate, leads Ansila to withdraw from the Nowa Sol concession," the company said. "Management believes the allocation of capital to lower risk conventional resource projects and new ventures, whilst preserving capital in the near-term, remains in the best interests of shareholders."
Ansila will remain at the Gora concession, where the partners recently re-entered the Siciny-2 well and undertook hydraulic fracturing work. They were unable to achieve gas flow, however.
In addition to tight gas, the concession holds multiple conventional prospects containing a combined 210bn ft3 in best-estimate resources. Ansila said it was working with Gemini to progress work at one of these prospects, Rotliegendes.