FX Energy Signs Letter of Intent to Complete Industry Funding of First Kutno Well

FX Energy, Inc. today announced that it signed a Letter of Intent with Kulczyk Investments S.A., ("Kulczyk Investments") in connection with the Company's Kutno project in central Poland. The agreement provides for Kulczyk Investments to join FX Energy and the Polish Oil and Gas Company ("PGNiG") in drilling the first well to test the Kutno prospect. The Letter of Intent is subject to negotiation and execution of a definitive Joint Operating Agreement, approval by the boards of both companies and other matters.
The parties plan to test a previously undrilled 35,000 acre (140 square kilometer) 2-D defined Rotliegend structure at a depth of approximately 21,000 feet (6,500 meters). The prospect is believed to be the largest undrilled Rotliegend structure on-shore Europe. Well design and engineering are currently underway. The well is scheduled to begin drilling during the second half of 2011.
FX Energy will be the operator and will hold a 25% interest in the well and the project. PGNiG and Kulczyk Investments will hold 75% of the working interest in the well and the project.
David Pierce, FX Energy's CEO, said, "We are excited about drilling the Kutno prospect. This will be the highest potential well we have ever drilled and probably the highest risk. With PGNiG and Kulczyk Investments on our team, we will have a group of three experienced energy companies, all committed to Poland, working together on a big project that could be very important to Poland."
Source: Press release