ConocoPhillips chooses not to take stake in 3Legs Polish concession

3Legs Resources, an independent group focusing on the exploration and development of unconventional oil and gas, has said that, as anticipated, ConocoPhillips did not exercise its option to take a 70 per cent interest in 3Legs's three eastern Baltic Basin concessions in northern Poland.

ConocoPhillips last month exercised its option to become operator of the concessions. 3Legs said is considers that its drilling and seismic operations to date have increased the probability of success in this most prospective acreage, as compared to assessments made at the time of its initial public offering in June 2011.

The firm will now explore its options carefully before engaging in any operations on its eastern concessions.

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Meanwhile, on the western concessions operations are continuing to proceed, with testing equipment now mobilised to the Lebien location, where further testing is due to begin imminently on the Lebien LE-2H horizontal well.

Peter Clutterbuck, Chief Executive of 3Legs Resources, said: "ConocoPhillips's decision not to exercise its option on our three eastern Baltic Basin concessions is consistent with our own strategy of high-grading our acreage and focusing our activity on those areas which we believe offer most potential. We are firmly focused on prioritising and further de-risking the considerable areas that offer the most prospectivity in our Baltic Basin acreage, which are situated on our western concessions."

The share price fell 9.04% to 39p by 14:12.

NR