AMOCO UNIT SCHEDULED TO EXPLORE POLISH COALBED METHANE PROSPECT

Amoco Poland Ltd. has agreed to develop coalbed methane in Poland's Upper Silesian coal basin where coal has been mined since the 17th century. Terms of the agreement signed by Karl F. Arleth, Amoco Poland president and resident manager, and Michal Wilczynski, acting minister of Poland's Environmental Protection, Natural Resources and Forestry Ministry, call for Amoco to drill at least 15 wells in the next 3 years on the 120,000 acre contract area in South Central Poland, about 20 km

July 5, 1993

2 min read

Amoco Poland Ltd. has agreed to develop coalbed methane in Poland's Upper Silesian coal basin where coal has been mined since the 17th century.

Terms of the agreement signed by Karl F. Arleth, Amoco Poland president and resident manager, and Michal Wilczynski, acting minister of Poland's Environmental Protection, Natural Resources and Forestry Ministry, call for Amoco to drill at least 15 wells in the next 3 years on the 120,000 acre contract area in South Central Poland, about 20 km south of Katowice.

Amoco is to pay exploration costs during the first 3 years estimated at $10 million.

The government of Poland has an option to take an interest in the project if commercial production is established.

The plan hinges on Poland's approval of undisclosed tax and foreign exchange issues.

Once those obstacles are resolved, Amoco could renew the agreement for 3 years.

"This partnership has the ability to unlock the full methane potential of the Upper Silesian coal basin," Arleth said.

He said developing the region's coalbed methane would allow Poland more energy independence, as well as benefit its economy and environment.

Amoco in October 1992 became the first western company to sign a conventional oil and gas exploration agreement in Poland (OGJ, Oct. 12, 1992, p. 36).

That agreement calls for Amoco to spend about $20 million in 3 years on two exploration tracts, one covering about 1.7 million acres southwest of Warsaw and the other 979,000 acres southeast of Lublin on the Polish-Ukrainian border.

However, the pact still awaits approval by the Polish government, pending resolution of the same tax and foreign exchange issues on which the Silesian methane agreement depends.