FX Energy, Inc. has signed a Memorandum of Understanding with CalEnergy Gas (Holdings) Ltd., an affiliate of MidAmerican Energy Holdings Company, for the joint exploration of certain of FX Energy's oil and gas exploration property interests in Poland. Details of the Memorandum of Understanding were not disclosed. The proposed transaction is subject to the negotiation of a definitive agreement with CalEnergy and other matters. FX Energy expects to have the definitive agreements completed in thirty to sixty days.
FX Energy holds interests in three project areas in Poland:
- The Fences project area covers approximately 300,000 acres in western Poland's Permian Basin. FX Energy currently holds a 49% interest in the Fences project area and the Polish Oil and Gas Company (POGC) holds 51%.
- The Pomerania project area covers approximately 2.2 million acres in western Polandís Permian Basin. FX Energy currently holds a 100% interest in the Pomerania project area except for one block of approximately 225,000 acres, where its interest is 74% and the POGC holds 26%.
- The Wilga project area covers approximately 250,000 acres in central Poland; FX Energy holds a 45% interest.