PGNiG to Start Seismic Works on Danish E&P License

Mid-September, PGNiG is to start seismic works in Denmark. The aim of the works is to explore oil & gas deposits on the license situated in southern Denmark, near the German border. Geofizyka Toruń has been contracted to perform the works.

The contract for 2D and 3D seismic works in South Jutland on 1/05 license was signed on July 24, 2009 by Zbigniew Curyło, Branch Manager of the PGNiG SA's Branch in Denmark, and Maciej Górski, President of Geofizyka Toruń. The works are scheduled to start on September 15,  2009 and the field works are planned to last approximately 1.5 months.

The contract will be valued at 26.9 to 31.3 million DKK (PLN 16.2 to 18.7 million, respectively), of which 20% will be paid by the Danish partner, i.e. North Sea Partner (Nordsofonden), a state-owned company which pursuant to the Danish law holds a 20% share in the license. The final contract value will be established after test profiles are performed on the license, which will allow to settle on the field works' methodology.

In the opinion of experts, the Danish license offers prospects for the discovery of oil deposits in the Main Dolomite structures similar to those in which oil and gas deposits have been found near Gorzów and in the Pomerania Region in Poland. ‘A similar area east of the PGNiG's license holds 13 oil and gas deposits in Germany (such as Grimmem and Reinkenhagen); further to the east in Poland, there are deposits such as Wysoka Kamieńska, Kamień Pomorski, Maszewo. The opposite, southern edge of the basin holds oil and gas deposits near Gorzów, Poland, with a number of further deposits situated further to the west in Germany and Netherlands', says Waldemar Wójcik, Vice-President of the Management Board of PGNiG for Oil Mining.

PGNiG signed the first agreement for the transfer of a 40 percent share in the Danish exploration and production license held by Willumsen Exploration Consultants ApS in December 2007. In March 2009, PGNiG purchased a further 40 percent share from Odin Energy A/S. Currently, PGNiG SA holds 80% of shares in the license and is the license operator.