The wells are to provide additional information on the crude oil potential of the play. The spudded well is located within the Szczecin Basin, just east of the Lubiatów – Międzychód – Grotów field, the largest oil and gas discovery to have been made in recent years.

 

The decision to drill the well and the choice of its location had been preceded by another review and re-interpretation of 3D seismic. The seismic image confirmed that the acreage covered by the two companies' joint operations includes some highly prospective areas in terms of future oil exploration. Based on the seismic interpretation, the ORLEN Upstream and PGNiG teams proceeded to evaluate the recoverable reserves of the entire Sieraków structure, on the basis of which a preliminary development plan was drafted. If the appraisal wells confirm the presence of commercial quantities of hydrocarbons, production from the field in the Sieraków area may be launched in 2016.

 

Following preparatory work and the installation of a drilling rig, the drilling work was commenced in January and is expected to be completed within about three months.. Based on the Geotechnical Drilling Plan, the well is to penetrate the Main Dolomite (a potentially hydrocarbon-bearing reservoir) and reach a target depth of 3,350 metres. The Plan also includes logging and hydrodynamic testing of the well. The other two wells to be drilled on the Sieraków structure are scheduled for 2011-2012.

 

One of the cornerstones of PKN ORLEN's current strategy is to develop new business segments, including the upstream (E&P) segment. The Company's long-term objective is to develop into a multi-utility with a diversified business portfolio. The envisaged development of the upstream segment is expected to result primarily in a potentially higher return on assets and sustainable cash flows, while enhancing the Company's security.

Source: PAP