3Legs Resources plc (3LEG) - Corporate Update
RNS Number : 6891N
3Legs Resources plc
02 October 2012
For Immediate Release
2 October 2012
3Legs Resources plc
3Legs Resources plc (the "Company" and, together with its subsidiaries, the
"Group"), an independent oil and gas group focusing on the exploration and
development of unconventional oil and gas, announces the following corporate
and operational update.
Baltic Basin concessions
As anticipated, ConocoPhillips did not give notice to exercise its option to
take a 70% interest in the Group's three eastern Baltic Basin concessions in
northern Poland, prior to the expiry of the option on 30 September 2012.
As explained in the Group's interim results released on 27 September 2012, in
high-grading its acreage the Group has identified the extensive areas within
its Baltic Basin concessions which it considers to be most prospective for
further exploration, by reason of the thickness of the target formations and
reservoir rock properties. These areas are situated on its western
concessions, over which ConocoPhillips had already exercised its option,
becoming operator on 14 September 2012. The Group considers that its drilling
and seismic operations to date have increased the probability of success in
this most prospective acreage, as compared to assessments made at the time of
its initial public offering in June 2011.
The Group will be considering its options carefully before engaging in any
operations on its eastern concessions.
Operations on its western Baltic Basin concessions are proceeding as
previously announced. Testing equipment has been mobilised to the Lebien
location, where further testing is due to commence imminently on the Lebien
LE-2H horizontal well. Rig mobilization for the Strzeszewo LE-1H vertical
well is continuing and the well is expected to spud within the next week.
Peter Clutterbuck, Chief Executive of 3Legs Resources, said:
"ConocoPhillips' decision not to exercise its option on our three eastern
Baltic Basin concessions is consistent with our own strategy of high-grading
our acreage and focusing our activity on those areas which we believe offer
most potential. We are firmly focused on prioritising and further de-risking
the considerable areas that offer the most prospectivity in our Baltic Basin
acreage, which are situated on our western concessions."
For further information contact:
3Legs Resources plc Tel: +44 1624 811 611
Peter Clutterbuck, Chief Executive Officer
Alexander Fraser, Chief Financial Officer
Jefferies Hoare Govett Tel: +44 207 029 8000
College Hill Tel: +44 207 457 2020
Notes to Editors
3Legs Resources was established in early 2007 to focus on the exploration and
development of unconventional oil and gas resources, with a particular focus
on shale gas in Europe. A first mover in Poland, 3Legs Resources has acquired
six licences covering approximately 1,084,000 acres (gross) in the onshore
Baltic Basin, a region considered to be one of the most promising shale basins
in Europe. The Company's primary targets in the Baltic Basin are the
organic-rich black shales of the Lower Palaeozoic section. In addition to
these assets, the Company holds onshore exploration licences over acreage near
Krakow in southern Poland and in Baden-Württemberg in south-west Germany.
The technical information and opinions contained in this announcement have
been reviewed by Peter Clutterbuck (MA Honours in Engineering, Cambridge
University and former Member of the Board of the Society of Petroleum
Engineers in London), Chief Executive Officer of 3Legs Resources plc, who has
over 35 years of experience in the oil exploration and production industry. He
has consented to the inclusion herein of such technical information and
This information is provided by RNS
The company news service from the London Stock Exchange
MSCDLLBBLBFXFBD -0- Oct/02/2012 07:39 GMT
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