Under terms of the LOI, POGC will earn a 49% interest in the company’s 880,000 acre Warsaw South concession.
In the first phase, both the companies agreed to acquire 273km of 2D seismic and to drill one exploration well in the Warsaw South concession to the depth of approximately 3,800m during 2011.
FX Energy will be operator of the joint works.
FX Energy president David Pierce said that the company was currently acquiring seismic over a number of leads in the Warsaw South concession.
"Our expectation is that this seismic will provide at least the first two drill sites for our Warsaw South wells in 2011. We are pleased to expand our relationship with POGC to include drilling in this acreage," Pierce said.
