Exxon Ends Shale Exploration Program in Poland
Exxon Mobil (NYSE: XOM), the world's largest integrated oil company, has ended an exploratory shale gas program in Poland after two test wells found insufficient amounts of gas. The failure of the program is seen as a hit for Poland as the central European country had been hoping to find shale gas reserves which would help it ease its dependence on Russian energy. In a statement, Exxon Mobil said that it ended the search in Poland because "there have been no demonstrated sustained commercial hydrocarbon flow rates."
Exxon has six licenses in the country. Poland's Economy Minister said that Exxon should either give up its licenses or sell them to another company. In 2009 and 2010, Exxon acquired the licenses in order to explore for gas in areas that had similar geological conditions as huge shale discoveries in the United States.
He also noted that other large, global companies are continuing to explore in the region, including Chevron (NYSE: CVX) and Poland's PGNiG. Earlier this year, a geological study estimated that recoverable reserves in Poland were no more than 768 billion cubic meters, which was less than had been hoped. Nevertheless, a diverse group of companies are still operating exploratory programs in Poland.
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