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    Poland: PGNiG, FX Energy to Abandon Mieczewo-1

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Summary

PGNiG, FX Energy to will plug and abandon the Mieczewo-1discovery in Poland's Permian Basin after resouces proved sub-commercial.; FX Energy to Test Plawce-2 and Tuchola-3K Wells.

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Natural Gas & LNG News, News By Country, Poland

Poland: PGNiG, FX Energy to Abandon Mieczewo-1

PGNiG and FX Energy will plug and abandon their Mieczewo-1 discovery in western Poland's Permian Basin after the gas resources uncovered proved to be not commercial.

Following initial success mid-March, it appears the gas column is not much more than 10 meters, based on test results plus log and core data. PGNiG is the Operator and owns 51 percent of the working interest; FX Energy owns the remaining 49 percent working interest.

“Of course we are disappointed that the trap is too small to be commercial,” said David Pierce, FX Energy’s CEO. “This small a target would not have been on our drilling schedule but for encroaching home building which forced the decision to drill now or permanently abandon the target. Our primary focus in the Fences concession is on much larger targets, such as the Lisewo area where we plan to begin production and drill 2 to 3 more wells later this year.”

Plawce-2 Frac Operations Underway

Field operations are underway to frac three intervals in the Rotliegend and carry out three separate production tests. The project is expected to take approximately four to six weeks in total and results are anticipated in the latter part of May. Halliburton will carry out three separate fracs at intervals between 3,760 and 4,098 meters. After all three fracs have been completed, each interval will undergo a five or six day production test.

The Plawce-2 well was completed in the 3rd quarter of 2011 and is located in what is believed to be a several kilometer wide uplifted band of tight Rotliegend sandstone that stretches across the northern border of the Fences concession. The Plawce-2 well was designed to test whether a vertical multi-frac well could yield commercial production and whether this tight sand band merits further evaluation. The Plawce-2 well encountered 480 meters of tight Rotliegend sandstone. Logs, cores and a drill stem test yielded gas shows with no water. PGNiG is the Operator and owns 51% of the working interest; FX Energy owns the remaining 49 percent working interest.

Tuchola-3K to Test Upper Devonian

The Tuchola-3K encountered good light hydrocarbon shows but poor reservoir quality in a 36 meter section of the Main Dolomite. Deeper in the well it also encountered very good hydrocarbon shows and up to 20 percent interpreted log porosity within a 100 meter section of the reefoidal Upper Devonian. This horizon warrants further testing.

The well is now approximately 340 meters from an estimated total depth of 3,980 meters, where the target is oil in the middle Devonian sands. Once drilling is complete the FX Energy plans to log, evaluate the middle Devonian, and then move uphole to test the reefoidal Upper Devonian.

Meanwhile, the FX Energy’s technical team has recalibrated the seismic to directly image porous dolomite in the Main Dolomite near the existing wellbore. If they interpret better reservoir quality nearby, and if the well is not completed for production in the Devonian, FX Energy would consider a side-track operation further uphole to test the Main Dolomite a few hundred meters away from the current well bore.

The Tuchola-3K well is FX Energy’s first test well in one of the Edge concession blocks in northern Poland. Previous drilling by other companies encountered live oil and gas in a number of horizons in the region, including the Zechstein, Rotliegend, Devonian and Carboniferous. The Tuchola-3K well was designed to test the Zechstein Main Dolomite, the Upper Devonian and middle Devonian. FX Energy is the operator and owns 100 percent of the working interest.