Cooper Energy has secured an interest in an attractive oil and gas exploration and appraisal portfolio in Poland through a Joint Venture agreement with RWE Dea Germany, a subsidiary of RWE.

COE's share of the Joint Venture consists of a 40% working interest in six contiguous exploration concessions owned by RWE Dea in the prolific Polish Carpathian fold belt.

RWE Dea will retain a 60% interest in the Joint Venture and will be nominated as the Operator.

The MUAs cover a total area of 3,311 square kilometers and are situated in an established and proven petroleum province that contains numerous proven hydrocarbon play types with shallow oil fields in sandstone reservoirs of the Carpathian thrust-fold belt and additional large deep gas exploration leads in the underlying sub-thrust of the Carpathian Foredeep.

In addition to the exploration potential, the MUAs also contain the Pola Oil Field, which was discovered by RWE Dea with their Pola-1 exploration well in 2007.

Pola-1 discovered oil in the Ciezkowice and Krosno sandstone reservoirs. The discovery was further appraised in 2009 by the Pola-2 and Pola-3 appraisal wells, which also discovered oil in the Ciezkowice and Krosno sandstone reservoirs and these wells were cased and suspended for further evaluation. The Ciezkowice and Krosno reservoirs are characterized as low permeability sandstones and it is expected that modern completion techniques, such as hydraulic fracturing, may significantly improve well production rates.

Due diligence by COE has confirmed that the Pola Contingent Resource of 7.8 million barrels (P50, 100% JV) is reasonable considering the current uncertainties associated with the field. Other oil fields in the area have produced 1-7 million barrels of oil, which provide a sense-check on the estimated volumes for Pola.

To determine if the Pola Oil Field can produce at commercial production rates, it is planned to immediately execute a production well test on Pola-3 and a hydraulic fracture production well test on the Pola-2 well.

Following the production well tests, a field development plan (FDP) will be prepared by RWE Dea. The FDP will update the estimates of the recoverable oil volumes and cost to develop the oil field.

Following the FDP a final investment decision (FID) will be made by RWE Dea regarding the development of the oil field.

To further mature the shallow oil potential, RWE Dea has recently completed the acquisition of a 115 km2 3D seismic survey, which is adjacent to the Pola discovery. This data is currently being processed.

In addition to the shallower oil potential, RWE Dea has identified a deep sub-thrust gas lead at approximately 4,200 to 5,000 metres that COE believes has a Prospective Resource of 103 billion cubic feet (P50).

RWE Dea and COE will acquire further seismic over the next few years in order to mature additional shallow oil potential and other leads in the deep gas play.

Oil and gas infrastructure is very well established in the area, including gas pipelines and two oil refineries. Oil is usually transported to the refineries by truck.

Tags: Cooper Energy, RWE Dea