FX Energy Acquires Polish Acreage
FX Energy has made a successful bid for the exploration rights to approximately 553,000 acres located in the Rotliegendes sandstone trend of Poland's Permian Basin. The Company is working with the Ministry of the Environment in Poland to finalize the agreements that will give FX Energy 100% of the exploration rights in the new project area. The acreage, referred to as Fences III, is located approximately thirty miles south of FX Energy's Fences I and Fences II project areas.
Several gas fields located on the acreage are excluded or "fenced off" from the exploration acreage. These fields, discovered by the Polish Oil and Gas Company ("POGC") between 1967 and 1976, produced from both Rotliegendes sandstone and Zechstein limestone reservoirs and contained total reserves of over 700 billion cubic feet of gas. Extensive seismic and bore hole data exists on Fences III confirming the presence of the Rotliegendes and Zechstein horizons throughout the entire acreage block. There has not been an exploration program on this acreage in 25 years.
Referring to positive industry feedback received by the Company following
the recent farmout of its Fences I project, Company president David Pierce
stated, "We expect to bring experienced industry partners into our Fences II
and III project areas in the very near term, so we need to do as much
reworking of the existing data as we can immediately. We expect previously
non-resolvable targets to yield to two decades of technical advances in
geophysics, providing a significant value uplift before farmout."