3Legs withdraws from its Western Baltic concessions

The energy company registered on the Isle of Man announced that it has transferred its interest in three concessions in Lublewo to ConocoPhillips. “On the basis of the information presently available to it and reviewed with Netherland, Sewell & Associates, the Company does not feel confident that the flow rates from this well are likely to improve to a level that it would consider commercially viable,” 3Legs wrote in its statement. “The Company has a one-time option to cease participation in activity on its three western Baltic Basin concessions once its net share of expenditure reaches $19 million; this limit has now been reached,“ the statement continued, explaining, that 3Legs has exercised such option. The Lublewo concessions showed the most promising preliminary results, but after further testing the results where discouraging. “In general, the well is producing higher amounts of oil than anticipated, whereas natural gas production is lower than had been hoped. While it had been hoped that early hydrocarbon production rates might improve substantially as the well continued to flow back frac fluid, this has not yet occurred,” the statement wrote. Following the transfer of its interest in its three western Baltic Basin concessions to ConocoPhillips, 3Legs Resources holds three concessions covering approximately 500,000 acres (gross and net) in the eastern part of the onshore Baltic Basin in northern Poland.