Total today announced an agreement with ExxonMobil to farm into the Chelm and Werbkowice exploration concessions with a 49% interest, subject to the approval of the Polish authorities.
Under the terms of the agreement, ExxonMobil and Total will form a partnership operated by ExxonMobil, which retains a 51% interest.
Awarded for a period of five years from March 2009 and December 2008 respectively, the Chelm and Werbkowice exploration concessions are located in the Lublin Basin in southeastern Poland and cover 1162 km2 and 995 km2. The work programme for each concession comprises acquisition of seismic data, drilling of an exploratory well and a production test if drilling results are encouraging.
To date ExxonMobil has already performed seismic acquisition works, as well as the drilling of an exploratory well on the Chelm concession currently being evaluated.
Shale gas has met with opposition in Europe though due to concerns over water contamination by the process known as ‘fracking’, which is used to free up gas which is locked in reserves. Poland is estimated to have as much as 3 trillion m3 of gas locked in shale formations, so potentially shale gas could be a real boom industry for Poland.