PKN ORLEN, Warsaw, has started drilling the first well for shale gas appraisal and exploration purposes in Syczyn. It is the first of the two core holes planned for 2011.

The decision to drill in Syczyn was made on the basis of the positive results of geological surveys of the area. The wells will be drilled by MND drilling & services of the Czech Republic. PKN ORLEN was awarded the license for hydrocarbon exploration, including exploration for unconventional gas in the region of Lublin, in 2007.

The work performed in the area to date includes chiefly seismic surveys and analysis of archived geological documentation. As the surveys in Wierzbica and Lubartow license blocks yielded promising results, PKN ORLEN decided to proceed to drilling, the next stage of the exploration work.

The drilling of each core hole should take from 30 to 40 days. The equipment provided by MND Drilling & Services to perform the work includes the quiet, drilling equipment currently used in Poland. At the end of November, promptly after the wells are drilled in Wierzbica, the crew with the equipment will move to the second license block, located in Lubartow.

The well depth assumed by ORLEN will be slightly above 3,000 meters. The decision whether to continue the work in this area will be taken based on the survey results and the examination of core samples. If the outcome turns out to be promising, in mid 2012 ORLEN will drill horizontal wells both in Wierzbica and Lubartow license areas.

"Production of gas from unconventional sources is much more difficult than production of crude oil," says Jacek Krawiec, president. "It requires new technologies and immense amounts of money. We are in the fortunate position that the test ground for shale gas production is across the Atlantic, where shale gas has been produced on an industrial scale for as long as ten years now. Ten years is a lot for technology we will use only the best, proved and safe technologies."