Polish Oil and Gas Co. (POGC), the national energy firm, will buy 30% of a EuroGas Inc. subsidiary and become operator of an oil and gas concession in southeastern Poland.
EuroGas holds exploration/development rights to 1,070,000 acres in ten concessions.
EuroGas said geologists have identified 12 exploration targets in the Rymanow-Lesko area near Sanok.
It said, "The largest of these targets, at a depth of around 2,000 m, could contain oil in place of up to 47 million tonnes (350 million bbl), or an equivalent in gas. If confirmed, it would be one of the biggest oil and gas discoveries in Central Europe.
EuroGas and POGC will begin shooting seismic in the region this year and plan a wildcat next year.
The Rymanow-Lesko area is between the Boryslaw oil region of Ukraine and the oil production region of Krosno in Poland. There are more than 25 oil and gas fields in the Carpathian petroleum province producing from the shallow Flysch.
EuroGas said most of the fields are expected to have deeper potential defined along trend. It said the Carpathian oil deposits are formed from many reservoir layers, located in variable depth range, and accumulated in tight, mostly vertical overthrusted and sliced folds.
