Realm Awarded 3 Concessions in Poland
Realm has been awarded three concessions in Poland. Collectively, the areal extent of these lands, held by the Company, is gross 635,541 acres (2,572 km2) and net 464,918 acres (1,881 km2). One concession, Gniew, is held 100% by Realm Energy and the other two concessions llawa and Wegrow are held 50% by Realm Energy and 50% by Source Energy Partners ("SEP"), a Denver, Colorado based private shale company. All concessions are located in the Eastern European Craton, targeting natural gas in Silurian, Ordovician and Cambrian Shales.
In the Baltic Depression, northern Poland, the Gniew concession, comprising 294,296 acres (1,191 km2), held 100% by Realm Energy, lays 70km south of Gdansk. The Company has committed to an exploration program that, at a minimum, requires reprocessing existing seismic data and conducting a new 100 km, 2D seismic program.
The llawa concession, 161,109 acres (652 km2) lays 134km south east of the city of Gdansk and is held 50% by Realm Energy and 50% by SEP. In connection with receiving Ilawa, Realm Energy and SEP have committed to an exploration program that, at a minimum, requires reprocessing existing seismic data and conducting a new 50 km, 2D seismic program. Lands contiguous to Gniew and llawa are expected to undergo significant shale gas exploration activity in the near term. Some of the industry players holding adjoining lands include San Leon Energy Plc/Talisman Energy Inc., Marathon Oil Corporation and Lane Energy/Conoco.
The Wegrow concession, 180,136 acres (729 km2), located in southeast Poland in the Podlasie Sedimentary Basin is held 50% by Realm Energy and 50% by SEP and lies approximately 70 km northeast of Warsaw. In connection with receiving Wegrow, Realm Energy and SEP have committed to an exploration program that, at a minimum, requires conducting 50 km of new 2D seismic and a well commitment to a depth of 2,750 meters within 3.5 years. The Silurian shales may lie at optimal depths for maturity and natural gas recovery, with TOC (Total Organic Carbon) measured by the Polish Geological Institute ranging from 1% to 17%. Lands, contiguous to Wegrow, have recently been licensed for hydrocarbon exploration by Exxon Mobil Corp., EurEnergy Resources Corporation and Cuadrilla Resources Holding Ltd.
Craig Steinke, Executive Chairman, commented on the SEP partnership, "SEP's senior executives have, in the past, demonstrated their ability to conduct highly efficient, low cost and profitable oil and gas operations in Europe. This history, in combination with a proven track record of building significant value in the Barnett and Fayetteville shales in North America, provides Realm with a valuable partner, well suited for proving substantial value through shale development in Europe."