Petrolinvest Forms Shale JV With Hallwood Energy
Petrolinvest of Poland and its Silurian Energy Services Sp. z o.o. subsidiary, has formed a joint venture with the U.S.-based Hallwood Energy to begin shale gas extraction in Poland.
Petrolinvest said Hallwood Energy is a company specializing in the production of unconventional oil and gas. It has a unique fracturing technology, used by major U.S. companies such as Chesapeake Energy and Talisman Energy, and over 20 years of experience in the production of shale gas in the United States and Canada, operating for 10 years mainly in the field of hydraulic fracturing technology.
Silurian Hallwood Ltd., which will explore for oil and gas and perform consulting services in the area of drilling activities and hydraulic fracturing, is held by Hallwood Energy (44% ) Petrolinvest (29%), Tabacchi (22%) and Mr Wiesław Skrobowski (5%).
Wiesław Skrobowski, the President of Silurian Energy Services Sp. z o.o. said that the company plans to accelerate the geophysical and drilling works, with the first wells drilled as soon as the next year.
In connection with the acceleration plans, Silurian Hallwood plans a private placement funding by the end of September 2011, through which the Company shall obtain USD 20-25 million with the valuation of Silurian Hallwood at USD 150 million.
Obtaining of funding amounting to USD 20-25 million by offering 'private placement' addressed individual investors already in September this year, definitely accelerates the implementation of Petrolinvest plans regarding the exploration of shale gas — said Bertrand Le Guern, the President of the Management Board of Petrolinvest.
Silurian Hallwood plans an additional fund raising of $75 million through a listing on the London's Alternative Investment Market (AIM) by the end of 2011.
Silurian Hallwood currently possesses four oil and gas (including shale gas) exploration licenses, situated within a very promising area of the Baltic Basin that the company states, is presumably rich with shale gas and shale oil, as well as conventional gas and oil.
Silurian Hallwood believes these hydrocarbons are probable by their analogical occurrence within the same geological structure across the border on the Russian side, where in Kaliningrad, Lukoil exploits conventional terrestrial and marine deposits, yielding an annual production value of about USD 500 million.