PKN Orlen Plans First Shale Well in Warsaw Province

Polish oil refiner PKN Orlen is to begin shale operations in the Province of Warsaw (Masovian Voivodeship), with the announcement of its plans for its first shale gas well in the area. 

Yesterday, the company launched the drilling of its first shale gas exploration well in the village of Goździk, located 69 km (43 mi) south-east of Warsaw.

The event, attended by Polish Minister of the State Treasury Mikołaj Budzanowski and and CEO of PKN Jacek Krawiec, marked the commencement of operations on Garwolin licence in Warsaw.

Though this is the company's first shale gas well to be drilled in Province this year, it will not be the last in the country this year. Orlen has plans to drill between five and seven exploration wells in 2012, including other fracked wells.

PKN Orlen says that it expects drilling on the well to take 60 days with continous core of around 300 metres to be taken in the process. Evaluation of this core will dictate whether PKN continues operations on this well.

Mr. Krawiec said the emphasis on shale would help to propel Poland's growth 

"The answer to the recently repeated question 'what will take the place of the Euro 2012 project' is the exploration for, and then the production of, Polish shale gas," he said. "[The] Polish economy will first be propelled by expenditures on new wells and then, in a few years' time, by cheaper gas, which will be purchased from local companies rather than foreign ones, so the money will stay in Poland."

Minister Budzanowski echoed the sentiments saying the drilling would bring Poland closer to a more rounded and complete estimation of its shale reserves and pushed it ahead of foregin competitors.

"With each newly drilled well, we are getting closer to an accurate estimate of the actual potential of the deposits," he said.

"The determination and commitment shown by Polish operators can only be envied by foreign licence holders, which sometimes give up work after just a few attempts. This confirms our belief that Polish shale is very much a national project. We are also proving that - when it comes to pursuing goals that make business sense - we have been and will be consistent."