3Legs Resources Rises as Shale-Gas Well in Poland Lifts Flow
3Legs Resources Plc (3LEG), a shale-gas explorer in Poland, rose the most in almost a month in London trading after a Baltic Basin well increased output.
3Legs climbed 7.5 percent to 43 pence, the biggest gain since Oct. 10.
The Lebien LE-2H well showed flow rates as high as 780,000 standard cubic feet a day, up from a previous maximum of 520,000 cubic feet a day, 3Legs said today in a statement. It’s removed a so-called nitrogen lift, which helps initiate fuel flows.
“We are very pleased that the well is showing a significantly improved performance as compared to 2011, in that the well now flows without the assistance of a nitrogen lift,” Chief Executive Officer Kamlesh Parmar said in the statement. “The plan is to continue further testing.”
Parmar took the helm last month after 3Legs’ stock slumped more than 40 percent since the start of the year. Concern that Poland’s shale potential was overestimated has led Exxon Mobil Corp. (XOM) to return some of its licenses. ConocoPhillips (COP) bought a 70 percent stake in three western Baltic Basin licenses this year from 3Legs, which is based on the Isle of Man in the Irish Sea.
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