The order consists in the execution of the test and operation hole Banska PGP-4 for thermal water in Szaflary in the village of Szaflary as of item No 8310/2. The undertaking called “Execution of the Bańska PGP-4 research and operation well for the purpose of establishing thermal water resources in Eocene works Numulite and Mesozoic substrates of the Native Podhale in the mining area Podhale 2" is subsidized by the National Fund for Environmental Protection and Water Management. The subject of the contract shall include in particular:

-preparatory work,

-construction of a geothermal hole with a depth of 7000m,

-hydrogeological research,

-geophysical studies,

-tests and special measurements,

-work after the completion of drilling (e.g. dismantling equipment, land reclamation, waste disposal)

-preparation and transfer to the Contracting Authority all drilling documentation.

Stages of execution of the order item:

The designed test and operation hole Banská PGP-4 will be a vertical hole with a final depth of 7000 m, the main purpose of which will be to recognize and take thermal waters from the drill units of the Podhalean substrate (so-called lower thermal water collector) with a temperature at the outflow from taken above 100°C, with a capacity of at least 50m3/h (Variant1). In the event of failure to achieve the main geological objective, the Investor envisages the receipt of thermal waters from higher levels, i.e. the regal units of the Tatra Mountains lying below the upper geothermal collector at a supposed depth of 3750 — 4650 m. be 110 - 120°C (Variant2).

In the absence of prospects for taking thermal waters from deep aquifers, the projected hole is assumed to take thermal waters from carbonate tracks of the White Dunajec unit, the so-called main (upper) geothermal collector of Podhala, at least 200 m3 /h at a temperature at a temperature of discharge from the hole about 90°C (Variant3). If lower than the expected operational parameters of the hole are obtained, the decision to take thermal waters will be taken by geological supervision after consultation with the Investor. The investment was divided into 9 stages with the fact that the seventh stage will be implemented in one of the 3 options given. The choice of options will be made after the completion of stage 6 based on the results of hydrogeological surveys, hydrodynamic tests, geophysical measurements and Production Log, and investor decisions in consultation with geological surveillance. Each of the stages of the planned work is also a settlement stage. Due to the possibility of thermal water levels at different depths, three variants of the technical design of Banska PGP-4 (tables 3-5 PRG) were designed. The choice of the target variant of the hole structure will depend on which of the thermal water aquifers will be included for operation. The geological and technical projects of the hole are presented in Annexes 8.a — 8.c. PRG.

The first three stages include preparatory work and drilling of a hole in intervals indicated in PRG and confirmed by geological surveillance to a depth of approximately 2880 m, but not less than to reach the Eocene numulite spur with tubing and cementing of pipes to the top. Stage 4 and 5 includes drilling of a hole to a depth of approximately 5400m with tubing and cementing (below the water collector) of pipes in intervals indicated in the PGR and confirmed by geological surveillance.

Stage 6 assumes, according to the PGR, drilling of a hole in the interval indicated by geological surveillance to a depth of approximately 7000m and conducting hydrogeological tests, hydrodynamic tests and geophysical measurements and Production Log. The choice of the variant (option) of stage seven depends on the geological conditions present in the hole and the results of tests, tests and measurements planned in PRG and conducted in intervals confirmed by geological surveillance.

Step 7 involves reinforcing and sharing a hole in one of three variants.

Depending on the choice of the variant, the work will differ in the diameter and length of the filtering column, the diameter and length of the tie-back of the liner along with its cementation, the possible depth of the decommissioned part of the hole, the place of acidation of the bed zone or the possible cut-out site and pulling out the cladding pipes.

Stage 8 assumes the selection, delivery and installation of the operating head and pipe truss, while stage 9 includes work related to the demobilization of equipment and personnel and the cleaning and release of the investment square.