LNG Energy announced that Saponis has spudded its second Polish gas shale well, Lebork S-1, on March 11, 2011, on the Slupsk concession. LNG Energy holds a 20% net working interest in Saponis which in turn owns three concessions in Poland.
Immediately after drilling the first well, the rig was mobilized and relocated 60km to the east onto the target location on the Slupsk concession. The well location is 30km southwest of the Lane Energy/ConocoPhillips' Lebien LE-1 well which was drilled and completed in late 2010. The Lebork S-1 well is being drilled with the same drilling rig contractor, crew and equipment used for the ConocoPhillips well located at Stegna (late 2010) and the LNG Wytowno S-1 well (early 2011). LNG believes that the procedural familiarity and experience gained from these successfully drilled previous wells will benefit the Lebork S-1 well through optimized drilling efficiencies, leading to reduced overall costs.
LNG is very encouraged with the previously announced results of its first gas shale well drilled, Wytowno S-1 and is currently undertaking extensive core analysis testing to characterize the 221 meters of prospective Cambrian, Ordivician and Lower Silurian gas shales encountered. This analysis is expected to be received in approximately 6 weeks. Rock properties obtained from the core analysis will determine how and where hydraulic fracturing to stimulate the zones of greatest anticipated natural gas production will be undertaken. LNG is currently evaluating efficiencies that may be achieved by performing fracture stimulations on both the Lebork S-1 and the Wytowno S-1 wells concurrently.
"These are very exciting times for LNG as we develop our acreage in the Baltic basin's gas shales by spudding our second of three wells to be drilled in 2011. With each new well our team is becoming more efficient in all phases of operations. This experience will be of substantial benefit when we drill our recently acquired Joyce and Maryani concessions," said Dave Afseth, President and CEO of LNG.
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