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    Technical Challenges Provide Mixed Success for 3Legs

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Summary

In the first detailed well examination data of the shale gas potential in Poland, 3Legs Resources plc today provided highly anticipated results from its Lebien LE-2H hydraulically fractured shale gas well.

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Natural Gas & LNG News, Poland, Shale Gas

Technical Challenges Provide Mixed Success for 3Legs

3Legs Resources plc today provided highly anticipated results from its Lebien LE-2H hydraulically fractured shale gas well.

In the first detailed well examination data of the shale gas potential in Poland, the company announced gas flows tempered by issues with the recovery of fracing fluids.

The gas flow rate started at an unstabilized rate of 2.2 Mcf/d on 8 September with the aid of a coil tubing unit and nitrogen lift. On 17 September the well was completed with a tubing string to allow testing for a longer duration. The well continued to produce frac water back with the aid of a nitrogen lift and at the same time commenced flowing natural gas at an initial rate of approximately 380 mscf/d.

The well has continued to dewater with the aid of the nitrogen lift and the natural gas flow rate has been between 450 and 520 mscf/d as at 25 September. As at 25 September, 15% of the frac fluid had been recovered.

Industry participants contacted by Natural Gas Europe commented that technical issues experienced at Lebien LE-2H were not unusual.  "It just may a matter of the wrong mixture of fracing fluid, " said one source.

Peter Clutterbuck, chief executive of 3Legs Resources calls the initial gas flow rate encouraging. “Our objectives with this well were to achieve a sustained gas production rate, and to gather data to further understand the reservoir. We are very pleased to have achieved both these objectives on our first attempt.”

Lebien LE-2H is now in the process of being shut in pending further analysis, with the option to conduct additional production testing at a later date using lower cost solutions.

Warblino LE-1H horizontal well

3Legs also provided an update on the Warblino LE-1H horizontal well, located approximately 25 km to the west of the Lebien LE-2H well.

Warblino LE-1H well was drilled initially as a vertical pilot well to a total vertical depth of approximately 3,222 metres. Some 134 metres of wireline core and a further 50 sidewall cores were taken over 75 metres of additional interval. An extensive set of logs was also run.

Preliminary analysis of the logs and extensive other data indicates that a prospective deeper interval has been identified.

Following drilling of the vertical wellbore, the well was plugged back as planned and a horizontal section of approximately 1,246 metres was drilled in this deeper interval, staying within the upper 5 metres of the formation for virtually the entire length of the lateral.

Gas shows were encountered throughout this interval. Just prior to reaching the planned lateral length, the well encountered hole stability issues, and it was decided to redrill this lateral. The new lateral was drilled to 3,844 metres measured depth with a 500 metre horizontal section. This was a shorter horizontal section than planned so as to reduce the risk of encountering hole further stability issues.

3Legs is preparing Warblino LE-1H for an extensive well stimulation programme, following which the well will be put on test, scheduled for later this year.

“We are encouraged by the characteristics of the new shale interval we have encountered in the Warblino LE-1H horizontal well and believe this represents a promising additional target in the basin. We look forward to the test results of this well programme, scheduled for later this year,” said Clutterbuck.

In August 2009,  Lane Energy, a subsidiary of 3Legs Resources plc. and ConocoPhillips, entered into an agreement under which the parties agreed to  jointly evaluate the potential of Lane ’s six Baltic Basin licences covering an area of ~1 million acres (approximately 4,000 square kilometres).