FX Energy has signed a new agreement with CalEnergy Resources expanding the area of the FX/CalEnergy joint operations
in Poland. CalEnergy earned the acreage covering the Zaniemysl gas field by paying for the cost to drill the Zaniemysl-3 well. The agreement covers new acreage surrounding the Zaniemysl field referred to as the Greater Zaniemysl Area (GZA). The GZA was established to allow the two companies to put the Zaniemysl discovery into production while developing other nearby natural gas
opportunities that both parties believe have the potential to add economic value to the overall Zaniemysl project.
The GZA will increase the acreage earned by CalEnergy to 45,220 acres covering approximately 17% of Fences I, and will require CalEnergy to pay $250,000 of FX Energy's share of geological and geophysical work on the GZA project. Both companies anticipate additional seismic acquisition and reprocessing in the expanded project. FX Energy and CalEnergy will each hold
a 24.5% interest in the GZA and the Polish Oil and Gas Company (POGC) will hold 51%.
"On its own, the Zaniemysl field is an unquestioned commercial success.
We are working on the design and construction schedule for production
facilities and pipeline and we will drill the Zaniemysl-4 well to tie into
that schedule. But it just makes good economic sense to think about other
natural gas opportunities in the neighborhood that can share these
facilities," said David Pierce, president of FX Energy. "We want everyone's
interest aligned within a sensible economic area. Therefore, we are pleased
to have CalEnergy expand its participation to include identifying and
developing the remaining potential value of the GZA. Outside the GZA, FX will
continue its exploration program to discover large potential reserves in the
near term, starting with the Sroda and Rusocin exploration wells which are
next in line on the FX/POGC Fences I and II drilling schedule."
FX Energy holds interests in five project areas in Poland:
The Fences I project area covers approximately 265,000 acres in western
Poland's Permian Basin. FX Energy holds a 49% interest except for a few
thousand acres around the Zaniemysl-3 well where FX holds 24.5% and CalEnergy
holds 24.5%. POGC holds 51%.
The Fences II project area covers approximately 670,000 acres in western
Poland's Permian Basin. FX Energy has a 49% interest in Fences II and POGC
The Fences III project area covers approximately 770,000 acres in western
Poland's Permian Basin. FX Energy holds a 100% interest.
The Wilga project area covers approximately 250,000 acres in central
Poland; FX Energy holds a 45% interest.
The Pomerania project area covers approximately 2.2 million acres in
western Poland's Permian Basin. FX Energy holds a 100% interest in the
Pomerania project area except for one block of approximately 225,000 acres,
where its interest is 85% and POGC holds 15%. FX will drop the Pomerania
project area this year.