CalEnergy has committed to pay most of the costs of the well in order to earn 24.5% interest in the well and the approximately 2,500 acre prospect it will test. CalEnergy has a similar right to earn 24.5% interest in another well and prospect shortly after the Zaniemysl-3 well has been drilled, and thereafter the right to earn 24.5% in the entire 265,000 acre Fences I project area by paying $10.4 million less previous payments.
Costs incurred in drilling the Zaniemysl prospect also will be credited against FX Energy's remaining $5.4 million commitment to earn a 49% interest in the Fences I project area.
"We are very excited to be starting operations on this long-awaited well," said David N. Pierce, president of FX Energy. "We faced a tough learning curve, working through new regulatory requirements and getting to know a new partner, but now we're on top of that curve, we are working together efficiently and we will drill expeditiously."
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 subject to the right of CalEnergy Gas to earn half of that 49%. 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 holds 51%.
The Fences III project area covers approximately 770,000 acres in western Poland's Permian Basin. FX Energy holds a 100% 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%.
The Wilga project area covers approximately 250,000 acres in central Poland; FX Energy holds a 45% interest.
Most Popular Articles