Press Release : Group Activity Update

Following our initial enquiries in Poland in March earlier this year, 3Legs is delighted to report that on 25 October 2007, it was granted prospection and exploration licences for 5 concession areas in the Baltic Basin region of Northern Poland. These are for a 4 year term over a total area of approximately 1,033,000 acres. The work program obligations under these licences include shooting 3D seismic, and drilling exploration wells.

 

During the application process, 3Legs has had the opportunity to take core samples from the wells in the licence areas. The initial results from tests carried out on our behalf by Humble Geochemical Services in Texas are extremely encouraging, and have given us confidence that we have the required geological setting for a major shale project.

 

 

In addition, we also on 25 October 2007 submitted applications to the Turkish authorities for prospection and exploration licences for a number of blocks, where we feel there may be both shale and conventional hydrocarbon potential. We expect the application process for these blocks to take between 4 and 6 months to complete.

 

 

In order to provide additional working capital headroom, 3Legs have placed approximately £300,000 of Cadogan equity and raised a further £250,000 by way of debt. Potential sources of funding and possible joint venture/farm-out opportunities are now being reviewed.