PGNiG Norway, a subsidiary of Polskie Górnictwo Naftowe i Gazownictwo SA, has signed an agreement with Shell International Trading and Shipping Company Ltd. on sales of oil, which will be produced from the Skarv field on the Norwegian Continental Shelf.

Negotiations between PGNiG SA and Gazprom on the new pricing terms of gas imports to Poland have entered their crucial stage. If the Parties are not able to reach an agreement by the end of October 2011, PGNiG will file an application with the arbitration court in Stockholm.

Polskie Górnictwo Naftowe i Gazownictwo SA has started the Flame of Hope campaign. Its purpose is to collect the largest possible number of votes in support of an appeal to Members of the European Parliament to refrain from activities aimed at stopping shale gas exploration and production. To take part in the campaign, please cast your vote on the http://www.plomiennadziei.eu/ website.

Polskie Górnictwo Naftowe i Gazownictwo SA is the first Polish company to have started technological production of shale gas. Prime Minister Donald Tusk and other members of the government arrived at the location to personally participate in the event, which marks a major milestone not only for PGNiG, but also for the entire Polish economy.

Hydrocarbon exploration and production and power generation are two areas which are easy to combine, as natural gas coming from Polish fields is the best source to fire power generation units. "This is why PGNiG is strongly involved in exploration for hydrocarbons, including both conventional and unconventional reserves," said Michał Szubski, PGNiG's CEO, when opening a panel discussion on "Polish and European Gas Markets - Impact of the Shale Gas" organised by Polskie Górnictwo Naftowe i Gazownictwo SA on September 8th 2011 as part of the Economic Forum in Krynica

InterTransGas GmbH (ITG), a joint company of VNG - Verbundnetz Gas Aktiengesellschaft (VNG) and Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG) is conducting a market survey for a high pressure natural gas pipeline between Germany and Poland, the "IPG - Interconnector Poland - Germany".

In H1 2011, the PGNiG Group posted a net profit of PLN 1bn, with sales revenue increasing to PLN 11.5bn (by 7%) year on year. In H1 2011, the growing cost of gas purchases reduced the margin on gas sales, which had an adverse effect on the Group's financial performance. However, the Group was able to partially offset the adverse effect of a negative margin thanks to improved profitability of the Exploration and Production segment and a profitable disposal of shares in Zakłady Azotowe w Tarnowie-Mościcach.

On August 25th 2011, Polskie Górnictwo Naftowe i Gazownictwo SA signed the documentation for a EUR 1.2bn Eurobond issue programme with PGNiG Finance AB (PGNiG's subsidiary) and three banks, including Societe Generale, BNP Paribas and Unicredit Bank AG. This is the first stage of PGNiG SA's Eurobond issue programme.

Polskie Górnictwo Naftowe i Gazownictwo SA maintains its forecast for natural gas production at 4.3 billion cubic metres in 2011, with crude oil production forecast slightly lowered to 460 thousand from the 480 thousand declared earlier. The oil and gas production forecasts for 2012 remain unchanged.

Polskie Górnictwo Naftowe i Gazownictwo SA ("PGNiG") has acquired 24,591,544 shares in Vattenfall Heat Poland SA ("VHP"), representing over 99.8% of the company's share capital. After the project in Stalowa Wola, acquisition of the CHP plants from Warsaw is another stepping stone on the path to PGNiG's transformation into a diversified energy conglomerate.