3Legs Resources Results

20 September 2011
3Legs Resources Results

3 Legs Resources plc Interim Results

3Legs Resources plc (the "Company"), a company focussed on the exploration and development of unconventional oil and gas resources with a particular focus on shale gas in Europe, is pleased to announce its Interim Results for the six months ended 30 June 2011.

Financial highlights

  • Successful listing on AIM completed in June 2011
  • Raised £62.5 million before expenses, to fund the Company's ongoing seismic and drilling programme, with a primary objective of continuing to explore the Company's six Baltic Basin licences in Poland
  • Cash position of £61 million at period end

Operational highlights

  • Conclusion of initial analysis on Lebien LE-1 and Legowo LE-1 vertical test wells in March 2011, enabling the Company to develop a new interpretation of the Baltic Basin geology
  • Independent report by Netherland, Sewell & Associates Inc. on Original-Gas-in-Place ('OGIP') volumes on the Company's Baltic Basin licences, giving an OGIP figure of 170 tcf gross, 50 tcf net to the Company
  • Conclusion of drilling of Lebien LE-2H horizontal well in June 2011 on the Company's Lebork licence - this was the first horizontal shale gas well in Poland, and encountered high gas saturations throughout the horizontal section; preparation for its completion in Q3 2011
  • Acquisition and interpretation of 50 sq km of 3D seismic on the Company's Damnica licence in February 2011
  • Preparation for spudding of Warblino LE-1H horizontal well on its Damnica licence

Outlook

  • Multi-stage hydraulic fracture stimulation programmes on Lebien LE-2H and Warblino LE-1H horizontal wells, with first test results expected in Q4 2011
  • Planned participation in Government-approved PolandSPAN regional 2D seismic survey covering Baltic Basin, coupled with a revised timetable for completing remaining 3D seismic survey commitments on the Company's Baltic Basin licences
  • Acquisition of 3D seismic on the Company's Krakow licences to meet licence commitments, plus an additional 2D seismic survey on these licences
  • Variation of timetable for drilling first vertical test well on Krakow licences


Tim Eggar, Chairman of 3Legs Resources plc, said:

"We completed our initial public offering in June, raising £62.5 million gross, and consequently we look forward to continuing to leverage our first mover position in the Baltic Basin. We are making good progress in our work programme, having drilled the first horizontal shale gas well in Poland, and we have now successfully completed the first multi-stage hydraulic fracture stimulation of a horizontal shale gas well in Poland. We will continue to advance our primary objective of demonstrating the commercial potential of our sizeable Baltic Basin licences."

Full News Release and Results on London Stock Exchange website