Projects in Poland

17 May 2019

Palomar Natural Resources (“Palomar”) is on its way to become the first independent foreign company to start large-scale gas production in Poland – from the Rawicz gas field. The exploration success in Poland is a significant step for the Polish E&P sector and signals the opportunity for more discoveries in the Polish Permian Basin.              

Palomar has been present on the Polish market since 2014. Over the years company has developed proficiency in obtaining administration decisions, built a network and adjusted business and social activities to local standards.

Palomar is 100% shareholder of two oil and gas exploration, appraisal and exploitation concessions – Rawicz concession and Poznan block 207 concession.

 [Fig. 4 Palomar Natural Resources concessions in Poland]

Rawicz Concession

Rawicz concession covers 742 km2 and is located in Wielkopolskie voivodship in the Permian Basin The primary geological target is the Upper Rotliegend although there are a possible accumulations in the Main Dolomite.

Rawicz gas field

Rawicz gas field – located in Rawicki County – is the key PNR project in Poland.

PGNIG 1970s appraisal

Between 1974 and 1987 PGNiG conducted sparse 2D seismic survey and drilled five appraisal wells in the area. Four of those early wells tested gas or had gas shows. In 1976 PGNiG completed geological and reserves report estimating Rawicz GIP at 10 BCF field (375 mln m3 gas in place) and assessing gas production to be economically non-viable. Consequently, in early 1990s PGNiG relinquished Rawicz license.

San Leon 3D survey, PNR Rawicz acquisition in 2014

In 2011 San Leon Energy acquired and became the operator of Rawicz license resuming appraisal work in the area by conducting new 3D seismic survey over 165 km2. In September 2014 Palomar Natural Resources acquired 65% equity in Rawicz and become the operator. Following new depth migration of proprietary 3D seismic survey between 2014 and 2016 PNR drilled two successful wells that tested commercial gas flows. Results of the works showed great potential of Rawicz reservoir and gave PNR mandate to start development and permitting work to allow commercial production from the field in the near term.

In November 2016 Palomar signed gas off take contract with National Gas Company – PGNiG who are a market leader in gas distribution and trading. The contract allows for maximum gas volume of 15 MMCFD or 160 million m3 of gas per year to be transmitted to PGNiG infrastructure entry point 9 km west of Rawicz gas field.

As of today Palomar has completed technical design and permitting of surface infrastructure including gas dehydration facility and pipeline connection. In parallel, Palomar is working with the Regulator to approve Rawicz Gas Field development plan and transition to long-term production phase. Construction work on surface facilities and pipeline is underway with the objective to start test gas production Q4 2019.

Rawicz gas field fact sheet

Status:

First phase of development allowing test production of 3-5 MMCFD, further development wells pending.

Size of the field as per Ryder Scott CPR dated March 2017:

94 BCF – 2P reserves
49 BCF – 1P reserves
13 BCF – Developed reserves

Expected mature production:

14-22 MMCFD

Basin:

Permian Basin

Geological layer:

Rotliegend

Type of the field:

Conventional

Drilled wells:

Rawicz-12 drilled in 2014 to the depth of 1600 m TVD – flow tests at 4.48 MMCFD
Rawicz-15 drilled in 2016 to the depth of 1580 m TVD – flow tests at 3.99 MMCFD

Poznan 207 concession

Poznan 207 concession covers the area of 631 km2 and is located in Wielkopolskie voivodship in the Permian Basin area. The primary geological target is the Upper Rotliegend although there are possible accumulations in the Main Dolomite.

Siekierki gas accumulation

Block 2017 is located close to Poznan, the fourth largest city in Poland, and next to a main gas supply line. Siekierki is arguably Poland’s most promising tight gas asset.

Between 2007 and 2011 Aurelian conducted 3D survey and drilled four wells. Three of those wells were fracked. All four Siekierki wells tested gas. In September 2014 Palomar Natural Resources acquired 65% equity in Block 2017 and become the operator.

Currently, PNR is in the process of modifying the license and defining a new appraisal program with the Ministry of Environment.

Status:

Wells shut in. Pending further testing and appraisal.

Size of the accumulation:

Pmean GIIP of 468 BCF in the tight gas Rotliegend section

Pmean oil 4.2 MMbbl and 29.2 BCF in the Main Dolomite

Expected production:

Possible test production of 3-5 MMCFD subject to permitting small scale electricity or co-generation installation.

Basin:

Permian Basin

Geological layer:

Rotliegend, Main Dolomite

Type of the field:

Tight gas

Drilled wells:

Trzek-1 drilled in 2007 to a depth of 3,935 m MD – flow test at 2.5 MMCFD

Trzek-2H drilled in 2010 to a depth of 5310 m MD – flow tests at 3.0 MMCFD

Trzek-3H drilled in 2011 to a depth of 5026 m MD – flow tests at 3.2 MMCFd

Krzesinki drilled in 2011 to a depth of 3981 m TD – flow tests at 0.3 MMCFD