Soros Investment Sends Positive Message for European Shales

A $66 Million (Cdn) investment into BNK Petroleum Inc. by Quantum Partners LP, a private investment fund managed by Soros Fund Management LLC, should give cheer to those with an optimistic view for the prospects of shale gas exploration in Europe.

George Soros, Chairman of Soros Fund Management, LLC, is viewed as one of history’s most successful financiers, and his views on investing and economic issues are widely followed.

Shale gas naysayers have focused on a variety of issues ranging from the lack of infrastructure, regulatory and legal impediments and environmental challenges in Europe.

While undoubtedly these are issues that must be dealt with in a forthright manner in order to facilitate a commercially viable industry, one would think that an organization with the magnitude and resources as Quantum/Soros, undertook the due diligence that resulted in favourable outlook for European shale gas prospects and hence, their investment in BNK.

BNK was an early entrant into European shale gas land acquisitions and holds six concessions in Poland that total 1.6 million gross acres, as well as holdings in Germany.

The Company has said that it intends to use the net proceeds of the financing for general corporate purposes, including work commitments on its European shale gas concessions.

BNK and its partners in Saponis Investments Sp. Z o.o., recently awarded a contract to NAFTA Pila to drill the Wytowno S-1 and Lebork S-1 wells on the Slawno and Slupsk concessions in Poland.

NAFTA Pila recently completed drilling the Lebien LE1 well and is currently drilling the Legowo LE1 well, both for Lane Energy Poland.  These two shale gas wells are located on concessions directly offsetting the Saponis concessions.