LONDON, Sept. 17 (UPI) -- 3Legs Resources, a company exploring the shale natural gas potential in Poland, said Wednesday it was giving up because of a lack of commercial prospects.
The company said in an operational update "it would be in the best interests of its shareholders to exercise its option to withdraw" from three concessions in the three western Baltic shale basin in Poland.
Poland is thought to be rich in shale natural gas reserves. The European Investment Bank in June loaned the country $132 million for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine.
3Legs said some of its wells, which were exploited using hydraulic fracturing, were yielding oil and gas, but not at a level necessary for commercial operations.
"The company is not currently conducting any other operations elsewhere and, moreover, has committed to its shareholders not to pursue other activities outside Poland," it said in a statement. "It is therefore actively considering its options to maximize cash returns to shareholders in the most efficient, timely and cost-effective manner."
The company said it has a drilling program agreement with ConocoPhillips that includes an option to end the contract once its net share of expenses reached $19 million.
"This limit has now been reached," it said.
