Is Exxon Coming Up DRY in Poland?
Exxon Mobil (NYSE:XOM) has decided to call off its shale exploration drive in Poland following the failure of two of its test wells to produce gas in commercially viable quantities. The company holds six exploration licenses in Poland and had announced in January that it may consider its options afresh in the event well tests were unsuccessful.
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In March, a government report revised downwards the estimated potential of Polish shale gas reserves to a range of 346 billion to 768 billion cubic meters, which is about a tenth of the previous estimates.
This report, and now Exxon’s decision, put under a cloud the potential of Poland to be an alternative to Russian gas. Other foreign players seeking shale gas in Poland, including Chevron (NYSE:CVX) and Marathon (NYSE:MRO), may now rethink their next steps in light of Exxon’s recent moves.