Ansila Energy's withdrawal comes in the wake of the market turmoil caused by the global outbreak of coronavirus and a significant drop in oil prices
Ansila Energy has announced the pull out of its fully-owned subsidiary Liesa Energy Australia from the Nowa Sol concession and Jany- C1 well work programme in Poland.
The Australian oil and gas company blamed its withdrawal on the market turmoil caused by the global outbreak of coronavirus and a material weakening in the oil price.
It has also cited lesser investor support for the risks related to exposure to unconventional oil projects in the prevailing economic climate for its pull out from the Nowa Sol block.
Ansila Energy was to gain a 35% earn-in to the concession by funding the Jany-C1 well work campaign, which is slated to begin in the second quarter of this year.
The Australian oil and gas company said that Gemini Resources, which is the operator of the Nowa Sol concession will retain its 100% stake.
Ansila Energy’s remaining interests in Poland are held through the Gora concession where it made a re-entry into the Siciny-2 well recently and had carried out a fracture stimulation of the Carboniferous interval to earn a stake of 35%.
The company said that the appraisal operations confirmed the presence of hydrocarbon gas in the reservoir with free gas coming to surface. The firm completed operations at the Siciny-2 well with the data from the long-term transient pressure build-up test being reviewed.
Ansila Energy management comments on its exit from Nowa Sol concession
Ansila Energy chairman Bevan Tarratt said: “Our withdrawal from the Jany-C1 well work program is a reflection of the current difficult market conditions and shareholders risk aversion to unconventional resources following the results of the Siciny-2 well operations.
“The withdrawal allows the Company to preserve its cash resources, progress new venture opportunities and focus on its conventional assets in the near-term, which we look forward to updating investors on in the near future.”