The LOI is subject to negotiation and execution of a definitive joint operating agreement, approval by the boards of both companies and other matters.
The firms plan to test a previously undrilled 35,000 acre (140sq km) 2-D defined Rotliegend structure at a depth of approximately 21,000ft (6,500m).
Well design and engineering are currently underway and the well is slated 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 while PGNiG and Kulczyk Investments will hold 75% of the working interest in the well and the project.
The prospect is believed to be the largest undrilled Rotliegend structure on-shore Europe.
