U.S. firms fail to find gas, but explorations continue
"It was not a discovery," said Frederic Frankel, exploration manager for Poland with Texaco, which was drilling the well in Malanow, south of Poznan, in a 50-50 joint venture with El Paso Energy. "We are a little bit disappointed."
To date, no viable gas deposits have been discovered by Western exploration projects here and no foreign companies have started production. However, foreign companies aren't giving up their searches.
The most recent search that came up dry was done by FX Energy, which had drilled two wells in northeastern Poland that did not prove fruitful. Now FX is teaming up with another U.S. company, Apache, to start drilling two test wells in eastern Poland next month, according to Jacek Wroblewski, vice director of the geology department in the Environment Ministry.
"The Polish geology structure is so diversified, so the fact that nothing was found in one place doesn't mean that there is no oil and gas in another place," Wroblewski said. The only company currently producing oil and natural gas in Poland is the Polish Oil and Gas Company (PGNiG), which produces 4.5 billion cubic meters of gas a year to satisfy 40% of total gas consumption in Poland, he added.
Wroblewski said that no foreign company that has entered the market has yet pulled out. The same is not true, however, for companies that have searched here for coal-bed methane. Amoco gave up on Poland after failing to find viable deposits.
But Wroblewski said that coal-bed methane is quite different from oil and natural gas. "Coal-bed methane is there, it's a problem of efficient exploration, while in the case of oil and natural gas you just have to find it," he said.
Energy firms said they remain committed to search for oil and gas in Poland. "We hope to continue our program, there are no new drills announced, but we are not leaving," said Texaco's Frankel.
He added that the current low worldwide price for oil is putting a damper on exploration with companies reluctant to plow money into searches.
Frankel would not reveal the costs of Wielkopolska's failed exploration, but last year Texaco and El Paso said they expected to invest $10 million in the project.
Wielkopolska's well was the first deep exploration by a Western company here. Frankel said that although it proved dry, the findings from the 5,375-meter well would be helpful in other possible exploration programs.
Apache likewise said it has not been discouraged by its lack of success so far or that of Wielkopolska. "It doesn't affect us at all, we are optimistic," said Mark Bauer, managing director of Apache Poland. He added that Apache could find smaller reserves profitable unlike Texaco and El Paso. Apache plans to drill less costly, shallow wells of 2,500-3,500 meters, Bauer said.
"In baseball language, they were trying to hit a grand slam," he added. "We are looking to hit a lot of singles."
To date, no viable gas deposits have been discovered by Western exploration projects here and no foreign companies have started production. However, foreign companies aren't giving up their searches.
The most recent search that came up dry was done by FX Energy, which had drilled two wells in northeastern Poland that did not prove fruitful. Now FX is teaming up with another U.S. company, Apache, to start drilling two test wells in eastern Poland next month, according to Jacek Wroblewski, vice director of the geology department in the Environment Ministry.
"The Polish geology structure is so diversified, so the fact that nothing was found in one place doesn't mean that there is no oil and gas in another place," Wroblewski said. The only company currently producing oil and natural gas in Poland is the Polish Oil and Gas Company (PGNiG), which produces 4.5 billion cubic meters of gas a year to satisfy 40% of total gas consumption in Poland, he added.
Wroblewski said that no foreign company that has entered the market has yet pulled out. The same is not true, however, for companies that have searched here for coal-bed methane. Amoco gave up on Poland after failing to find viable deposits.
But Wroblewski said that coal-bed methane is quite different from oil and natural gas. "Coal-bed methane is there, it's a problem of efficient exploration, while in the case of oil and natural gas you just have to find it," he said.
Energy firms said they remain committed to search for oil and gas in Poland. "We hope to continue our program, there are no new drills announced, but we are not leaving," said Texaco's Frankel.
He added that the current low worldwide price for oil is putting a damper on exploration with companies reluctant to plow money into searches.
Frankel would not reveal the costs of Wielkopolska's failed exploration, but last year Texaco and El Paso said they expected to invest $10 million in the project.
Wielkopolska's well was the first deep exploration by a Western company here. Frankel said that although it proved dry, the findings from the 5,375-meter well would be helpful in other possible exploration programs.
Apache likewise said it has not been discouraged by its lack of success so far or that of Wielkopolska. "It doesn't affect us at all, we are optimistic," said Mark Bauer, managing director of Apache Poland. He added that Apache could find smaller reserves profitable unlike Texaco and El Paso. Apache plans to drill less costly, shallow wells of 2,500-3,500 meters, Bauer said.
"In baseball language, they were trying to hit a grand slam," he added. "We are looking to hit a lot of singles."
