FX Expands Acreage Position in Poland
FX Energy has signed an agreement with the Polish Oil and Gas Company to jointly explore approximately 670,000 acres in western Poland's Permian Basin. The acreage block known as Poznan South is on trend with FX Energy's Fences project area where FX Energy last week signed an agreement with CalEnergy Gas an affiliate of MidAmerican Energy Holdings Company.
Potential gas reserves in the Polish Permian Basin are expected to come from the Rotliegendes sandstone at a depth of approximately 3,000 meters. The Rotliegendes is productive from several fields developed by POGC along this trend. The Poznan South acreage runs along the full northern border of the Fences project area and also extends both northwest and southeast of the Fences.
"We believe this new acreage has even greater potential for gas reserves than the Fences project area," stated David N. Pierce, president of FX Energy. "The Rotliegendes sandstone accounts for over 40 trillion cubic feet of discovered reserves in the southern North Sea Gas Basin and several times that amount in the Rotliegendes Dutch on-shore fields. Only approximately 4 tcfe of Rotliegendes gas reserves have been discovered in Poland, primarily during the 1960's through the mid 1980's. The advanced technology that accounted for much of the success in the southern North Sea has not been applied to this under-explored gas play in Poland. We expect to begin discussions with potential farmout candidates at an early date regarding participation in this project so that we can begin drilling as soon as possible," continued Mr. Pierce.
"Our strategy for 2003 is to increase our acreage position in Poland, specifically in high potential areas where we can attract industry participation and funding. We are currently working on other opportunities that meet this criteria," said Pierce.