Energy giants end shale gas hunt in Poland

"Talisman's decision to exit Poland is driven by our strategic priority to focus on production within our two core areas: the Americas and Asia-Pacific,” executive vice-president of Talisman Europe-Atlantic, Paul Warwick said in a statement, Wednesday, as the prospect of a shale gas bonanza in Poland recedes.

Talisman have now agreed to transfer its interests in Poland to its partner San Leon Energy.

The United States' Marathon company said it had decided to end operations in Poland: "after an evaluation of the company's exploration activities in Poland and unsuccessful attempts to find commercial levels of hydrocarbons," Reuters reports.

Concern over the downgrading of the amount of shale gas which could be extracted from the ground in Poland, by the controversial 'fracking' method, plus what is perceived as over regulation and potential heavy taxes, resulted in Exxon pulling out of Poland last year.

"Of course what Talisman also took into consideration was [the] geological uncertainty and unclear legal framework [in Poland]," says Tomasz Gryzewski of Talisman Energy Polska.

Poland sees shale gas extraction as one way to lessen its reliance on Russian energy supplies.

Forty test wells have already been drilled in Poland with over 100 licences issued.

Initially it was thought that there may be as much as 5.3 trillion cubic metres of shale gas in Poland though estimates have now been slashed to about one tenth of that figure. (pg)