3Legs Resources has decided to withdraw from its joint venture project with ConocoPhillips on three western Baltic Basin concessions in Poland, according to a news release.

As part of the agreement with ConocoPhillips, 3Legs had a one-time option to stop participating in drilling activity on or before Dec. 31, 2014.

“In view of the results to date of the Lublewo LEP1-ST1H well, which it considers to be at sub-commercial levels, and the further time needed to complete the remainder of the testing phase on the well when the prospects of a more successful outcome appear remote, the company has concluded that it would be in the best interests of its shareholders to exercise its option to withdraw from the three western Baltic Basin concessions, thereby capping its financial liability in relation to these operations,” 3Legs said in the release.

The company’s equity interest in the concessions will be transferred to ConocoPhillips for no consideration, in accordance with the terms of the option arrangement.

In the release, 3Legs said the well continued to flow natural gas and light oil in addition to frac fluid after a nitrogen lift was commenced on Aug. 20. From Aug. 8 to Sept. 17, the well produced at an average rate of 396 Mscf/d natural gas and 157 bbl/d of light oil.

The well is producing higher amounts of oil than anticipated, but natural gas production is lower than had been hoped, the release said.

However, “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 said.