Talisman teams up with San Leon in $80m gas exploration project in Poland

2010-03-11



Talisman Energy, a Canadian oil and gas exploration and production company, has signed a joint venture agreement with San Leon Energy of Ireland about the joint development of San Leon’s gas concessions in northern Poland. The agreement covers two existing shale gas concessions in the Baltic Basin – Braniewo and Gdansk West – and a pending application for a third one, also in the Gdansk area. The total cost of the investment is estimated at $80m (approx. €21m) over the next three years.
San Leon has already carried out a seismic programme and is preparing to drill up to six wells across the concessions. Under the agreement, Talisman will pay 60% of the costs of the seismic programme, with the remaining costs to be shared evenly between the two firms. It will also drill one well in each of the three concessions, with an option to drill a second one (i.e. up to six in total). Talisman's interest in each concession will be 60%, or 30% if it fails to exercise the option to drill the second well.
According to San Leon’s estimates, the concessions have a potential of 4-6 trillion cubic feet of recoverable natural gas.