San Leon to develop Polish shale gas field with Baker Hughes

LONDON, Feb 12 (Reuters) - UK-listed gas explorer San Leon and U.S. oil services firm Baker Hughes (Stuttgart: BHU.SG - news) signed a letter of intent on Wednesday to jointly develop Poland's Skiekierki shale gas field.

The companies plan to start gas production from four existing wells, with Baker Hughes providing the funding needed in cash or field services, the companies said.

Poland's shale gas exploration landscape has been troubled by a huge reserve estimation downgrade and a lacking legal framework, resulting in major oil and gas explorers such as Marathon Oil (Frankfurt: USS.F - news) and Exxon Mobil (TLO: XOM-U.TI - news) leaving the country.

Poland's Prime Minister has since promised a new investor-friendly shale gas law to attract oil and gas explorers back to the country that is one of Europe's most shale-friendly nations.

Each of San Leon's four wells at the Siekierki field produced between 2-3 million cubic feet during testing, the company said on Wednesday.

San Leon also announced last month that it had carried out successful shale gas tests at a site near the northern city of Gdansk, making it the most commercially advanced shale project in the country.