"The signing of letters of intent with such prominent partners as PGE, Tauron and KGHM marks a very important step towards intensification of shale gas exploration in Poland. This is a primary goal for both PGNiG and our future partners. The expected success of these operations will mean primarily cheaper gas for Polish customers and significant improvement in Poland's energy security. The state budget and budgets of many local governments will benefit from additional revenues, which may be used towards various unmet needs. Another important aspect amid the ongoing crisis is the creation of new jobs," says Marek Karabuła, Vice-President of PGNiG SA, Petroleum Mining.

According to estimates of the U.S. Energy Information Administration, Poland may hold the largest shale gas reserves in Europe, amounting to more than 5 trillion cubic meters. The Wejherowo licence is one of 15 shale gas exploration licences currently held by PGNiG SA. According to experts, it is one of the most prospective licences. PGNiG commenced work in the Wejherowo licence area in 2010. Fracturing operations were performed at the Lubocino-1 well, confirming the presence of large shale gas accumulations. Analyses of the gas, coming from Silurian and Ordovician shales, have confirmed its very good energy characteristics, absence of hydrogen sulphide and low nitrogen content. Further analyses have identified the presence of heavy hydrocarbons.

In signing the letters of intent, the parties agreed that they would cooperate in line with the principles of business integrity and best business practice. The letters of intent will allow the parties to work out details of their future cooperation and will constitute the basis for relevant agreements to be concluded between the parties at the next stage.

Joanna Zakrzewska

Press Officer