By the end of the year, PKN ORLEN plans to drill at least three exploration wells, including a new horizontal well and a hydraulic fracturing operation. Currently, the Company is continuing work on Lublin-OU1, a conventional vertical well.

In search of unconventional hydrocarbon deposits, the ORLEN Group plans to drill another horizontal well in Nowy Stręczyn, a village located in the municipality of Cyców, in the second half of the year. This project will be ORLEN Upstream's fourth horizontal well. In addition, in early August the Company plans to carry out its third hydraulic fracturing operation, targeting the horizontal section of the well completed just a few weeks ago in Kisielsk, county of Łuków. Tenders to select a contractor for the project are now being concluded.

"The results of our earlier work on Nowy Stręczyn and Kisielsk wells were promising enough to warrant further engagement in both locations. This is excellent news, as only by drilling more exploration wells and carrying out tests can we come up with a realistic evaluation of Poland's unconventional hydrocarbon potential and assess the profitability of future production operations," said Wiesław Prugar, President of the ORLEN Upstream Management Board.

ORLEN Upstream is also working on a conventional exploration well in Mełgiew (Lublin-OU1), county of Świdnik. The well is to reach a depth of 4,600 metres, of which 1,000 metres have been drilled to date. Drilling of the vertical Lublin-OU1 well, to be completed in 2-3 months, will be accompanied by logging operations. Rock and formation fluid samples will also be taken and analysed. If the results are positive, a brief production test will be carried out at the Lublin-OU1 well. Following an analysis of the test results and interpretation of geological data, the Company will be able to schedule additional work to document the potential reserves.

PKN ORLEN Strategy for 2013-2017 envisages further development of upstream operations. One of its main objectives is to continue exploration and appraisal work in Poland by acquiring new seismic data, interpreting archived geological data and carrying out well drilling and stimulation projects.

About PKN ORLEN

PKN ORLEN is a Polish company and one of Central Europe’s largest refiners of crude oil. We specialize in processing crude oil into world-class unleaded petrol, diesel, heating oil, and aviation fuel as well as plastics and other petroleum related products.

We hold licences for onshore and offshore oil and gas exploration throughout the country. One of our shared priorities is to appraise and exploit natural gas from unconventional plays. Our adopted development direction is to transform PKN ORLEN into a multiutility complex with a foothold in the power generation business.