Unconventional gas in Central Europe
Unconventional gas resources occur in low porosity and permeability reservoirs that require horizontal drilling and fracture stimulation to develop. The three main types of unconventional gas resources are tight gas, shale gas, and coal bed methane. Tight gas has been developed in Europe since the 1980’s but not on the large scale of North America. Until very recently there has also been no significant attempt to address shale gas and coal bed methane. The ready availability of imported gas from the former Soviet Union and North Africa and the development of the North Sea oil and gas fields meant it was not necessary. North America which had a large onshore industry and did not have ready access to imports chose to develop the technology to produce unconventional gas. The US was so successful with this strategy that it became the world’s largest gas producer in 2009.
Unconventional gas is now attracting a lot of interest in Central Europe as governments there seek to address security of supply issues through the development of indigenous resources and international oil and gas companies look to apply their technology and experience from the North American shale plays. Significant acreage positions are being built up in coal bed methane and shale by such companies as ExxonMobil, Chevron, ConocoPhillips, Talisman and Marathon. Tight gas plays are also benefiting from this revolution as the availability of technology and attractive fiscal terms now make them economic to develop in the region. Aurelian’s Siekierki project in Poland is one example; a tight gas reservoir, discovered in the 1980’s, which is now being developed through the application of proven technology.
Shale gas and coal bed methane exploitation throughout Europe is in its infancy and it remains to be seen if the industry can have the impact it has had in the US. Tight gas, on the other hand, is well established in the Permian Basin throughout the North Sea, Holland and Germany but not in Central Europe. Aurelian’s Siekierki appraisal well will be the first use of multi fracced horizontal wells in Poland. It offers a great opportunity to showcase the potential of this technology in the region and to leverage this achievement for further growth.
"Central Europe has significant unconventional gas and yet-to-find hydrocarbon potential. We have first mover advantage in an area where energy security issues are driving the development of indigenous supplies; offering us outstanding opportunities." Dr Tunde Salami, Commercial and Business Development Manager.
