3Legs Resources Preliminary Results

21 March 2012
3Legs Resources Preliminary Results

3Legs Resources plc Preliminary Results for the Year ended 31 December 2011


3Legs Resources plc (the 'Company and, together with its subsidiaries, the 'Group'), an independent oil and gas group focusing on the exploration and development of unconventional oil and gas, is pleased to announce its Results for the year ended 31 December 2011.

Financial highlights

  • Successful listing on AIM completed in June 2011
  • Raised £58.1 million after expenses, to fund the Group's ongoing activities
  • Cash balances of £50.9 million at year end

Operational highlights

  • Independent report by Netherland, Sewell & Associates Inc. assessing Original-Gas-in-Place ('OGIP') volumes on the Group's Baltic Basin licences ascribes a best estimate OGIP figure of 170 tcf gross, 50 tcf net to the Group
  • Acquisition and interpretation of 3D seismic on the Group's Damnica licence
  • Drilling, fraccing and production testing of Lebien LE-2H horizontal well, the first horizontal shale gas well in Poland
  • Drilling, fraccing and production testing of Warblino LE-1H horizontal well

Post year end highlights

  • Decision by ConocoPhillips to exercise its option over the Group’s three western concessions in the Baltic Basin, thereby acquiring a 70% interest in and operatorship of the three concessions
  • Work programme for 2012 to include a vertical well on the Lebork concession, with the flexibility to drill a horizontal section at a later date
  • PolandSPAN regional 2D seismic survey commenced on Baltic Basin licences
  • 2D and 3D seismic survey on southern Poland licences completed in January 2012
  • Unaudited cash balances of £48.1million as at 29 February 2012

Forward strategy

  • Continuing to consider other unconventional resource opportunities; preferred area of activity remains Europe but other regions of the world will also be considered

Full News Release and Results on London Stock Exchange website