The six exploratory/appraisal wells were drilled with positive results, confirming the presence of natural gas or crude oil deposits, with total recoverable reserves estimated in the region of 3.5 billion cubic metres of natural gas (22.6 million boe). The new wells should be brought on stream in approximately two years.

In addition, the Company drilled four production wells to increase the recovery rates and thus improve the economic viability of production.

Two of the new production wells, Sowia Góra-11k and Lubiatów-13k, represent some 100,000 tonnes (730,000 boe) per annum of additional crude oil production capacity. The wells are located in the province of Poznań, on the Lubiatów-Międzychód-Grotów (LMG) field, which is one of the largest oil fields in Poland. The LMG deposit was discovered by the Lubiatów-1 borehole in January 2003, with production beginning in December 2012.

The remaining two production wells, Paproć-61 and Paproć-62, drilled on the Paproć natural gas field located in the province of Poznań, will contribute approximately 50 million cubic metres in gas yields (300,000 boe) per annum. The wells are intended to enable access to a section of the deposit where extraction has so far been limited, allowing production from the field to continue at current levels for a longer period of time. The Paproć gas field was discovered by the Cicha Góra-1 borehole in 1979, with production beginning in September 1985.

"The exploration and appraisal wells drilled in Q1 2015 will expand our reserves by 22.6 million boe, and the new production wells will yield 1.2 million boe of crude oil and 0.3 million boe of natural gas annually. We are seeking to boost production from our own fields and expedite development of confirmed reserves. It should be noted that gas volumes produced in Poland satisfy approximately 30% of domestic demand," said Zbigniew Skrzypkiewicz, Vice-President of the PGNiG Management Board, Chief Exploration and Production Officer.

Work was also carried out on wells located on unconventional, tight gas deposits Kramarzówka-2 and Dukla-1, which had been drilled in previous years. Further operations on the wells will depend on decisions issued by relevant administrative authorities.

"Work carried out by PGNiG on tight gas deposits is one the pillars of exploration and production in the upstream sector, ensuring stability of the domestic production portfolio through investigation of new geological structures," said Zbigniew Skrzypkiewicz.

In Q1 2015, PGNiG also discovered a new tight gas deposit in Pakistan, with reserves estimated at 4.5 billion cubic metres.

In 2015, crude oil and condensate production from local and foreign assets will grow to around 1.27 million tonnes (2014: ca. 1.21 million tonnes), and gas production − to around 4.5 billion cubic metres.

PGNiG Press Team