FX Energy has signed a definitive joint operating agreement with the Polish Oil and Gas Company (POGC) covering operations in the company's Kutno concession block in central Poland.
POGC will earn a 50% interest in the block in connection with drilling of the first well and FX will be the operator.
The firms has planned to test a previously undrilled 140sq km 2-D defined Rotliegend structure at a depth of approximately 19,000ft .
The 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 vice president of Operations Andy Pierce said that 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 and in a time of consumer concern over gas supplies in Europe, a multi-Tcf discovery would have real impact," Pierce said.