PGNiG: First stage collaboration agreement for shale gas exploration between PGNiG and Chevron Polska Energy Resources

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”, the “Company”) announces that on March 31st 2014 the Company entered into a first stage collaboration agreement for shale gas exploration (the “Agreement”) with Chevron Polska Energy Resources Sp. z o.o. (“Chevron”) (jointly – the “Parties”).
Under the Agreement, the Parties will collaborate in appraising shale gas deposits in four exploration licence areas in south-eastern Poland:
- Zwierzyniec and Grabowiec (owned by Chevron),
- Tomaszów Lubelski and Wiszniów-Tarnoszyn (owned by PGNiG).
The Agreement will enable to the Parties to commence the first stage of collaboration on shale gas exploration projects. The joint efforts will include drilling of an exploration well. The detailed scope and schedule of exploration work will be determined by a technical committee jointly appointed by both Parties. Pursuant to the Agreement, the Parties will also exchange geological data and experience gathered so far as part of their shale gas exploration efforts.
Concurrently, the companies will work on preparation of the second collaboration agreement. Execution of the second agreement will be subject to positive evaluation of the first stage exploration programme's results by the technical committee.
If the Parties move to the second stage of collaboration, their efforts will involve further exploration work in relevant licence areas. At all stages of the relationship PGNiG and Chevron intend to jointly carry out the exploration work, determine its scope and decide on the financing methods.
The collaboration will enable the Parties to reduce costs, share risks, and increase the pace of the exploration work. As a result, the process of assessing potential shale gas resources in Poland will be completed sooner.