FX Energy Signs Agreement on Kutno Prospect

October 6, 2010
FX Energy, Inc. (NASDAQ: FXEN) today announced the signing of a definitive Joint Operating Agreement with the Polish Oil and Gas Company (“POGC”) covering operations in the Company’s 710,000 acre Kutno concession block in central Poland, the company reported in a news release. POGC will earn a 50% interest in the block in connection with drilling of the first well; FX will be the operator.
The parties plan to test a previously undrilled 35,000 acre (140 square kilometer) 2-D defined Rotliegend structure at a depth of approximately 19,000 feet (6,000 meters). The prospect is believed to be the largest undrilled Rotliegend structure on-shore Europe. Well design and engineering are currently underway with drilling planned in 2011. FX Energy has the option to hold its full 50% share or farm down its interest further.
Andy Pierce, Vice President of Operations for FX Energy said “The Kutno well is a classic exploration well: high risk, high potential reward. The Rotliegend has not been penetrated in Poland at this depth, so there are legitimate concerns about reservoir characteristics and gas quality. On the other hand, the structure is massive; at 35,000 acres it has multi-Tcf gas potential. In a time of consumer concern over gas supplies in Europe, a multi-Tcf discovery would have real impact. We are excited to be moving forward on this project.”
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