ADDENDUM No. 1 TO JOINT STUDY AGREEMENT
This Addendum No. 1 ("Addendum No. 1") to the Joint Study Agreement dated May
21, 1996 (the "Joint Study Agreement"), is dated effective as of June 1, 1997,
between The Polish Oil and Gas Company ("POGC") having its offices at xx. Xxxxxx
0/00, Xxxxxx, Xxxxxx 00-537, represented by Xx. Xxxxxx Xxxx, Director, and Xx.
Xxxxx Xxxxxxxx, Director, Geonafta, and FX Energy, Inc. ("FX") having its
offices at 0000 Xxxxxxxx Xxxxx, Xxxxx 000, Xxxx Xxxx Xxxx, Xxxx, XXX,
represented by Xx. Xxxxx X. Xxxxxx, President.
1. Term. The term of the Joint Study Agreement is hereby extended to June 30,
1998, subject to the possibility of further extension by mutual agreement of
the parties.
2. First Right for FX to Participate. POGC hereby grants to FX the right of
first refusal to participate in any POGC concession now held or later
acquired during the term of this Agreement located south of 50. 15' if POGC
elects to take a partner in such concession. Specifically, POGC will not
allow any other party (other than Apache Corporation and subsidiaries) to
acquire any interest in any POGC concession located south of 50. 15' unless
the identical offer has already been made to and rejected by FX after thirty
(30) days' notice.
3. First Right for POGC to Participate. FX hereby grants to POGC the right of
first refusal to participate in any FX concessions now held or later
acquired during the term of this Agreement located south of 50.15' if FX
elects to take a partner in such concession. Specifically, FX will not
allow any other party (other than Apache Corporation and subsidiaries) to
acquire any interest in any FX concession located south of 50.15' unless the
identical offer has already been made to and rejected by POGC after thirty
(30) days' notice.
4. Eastern Target Areas. The parties have identified two target areas:
WOLA
----------------------------------------------
X Y Long Lat.
--- ---- -------------- --------------
535 5535 21. 29' 15.43" 49. 56' 43.91"
535 5547 21. 29' 19.36" 50. 3' 12.28"
550 5547 21. 41' 53.30" 50. 3' 8.42"
550 5535 21. 41' 47.69" 49. 56' 40.09"
GODOWA
----------------------------------------------
X Y Long Lat.
--- ---- -------------- --------------
536 5513 21. 29' 58.24" 49. 44' 51.68"
536 5532.5 21. 30' 4.72" 49. 55' 22.80"
572 5532.5 22. 0' 9.25" 49. 55' 11.10"
572 5513 21. 59' 56.22" 49. 44' 40.06"
as shown on the attached map) in the eastern part of the Area of Interest
where POGC already holds exploration concessions. FX will contract for
seismic acquisition as it deems appropriate over each target area before the
end of 1997; FX will pay 100% of such seismic cots. By March 31, 1998, FX
and POGC will select a drill site in each target area to be drilled in 1998.
POGC will have the option, exercisable by written notice within 90 days
after drillsite selection but in any event not later than June 15, 1998, to
operate and to take up to 60% interest. If POGC does not wish to operate or
if POGC elects to take 49% or less interest, or if POGC does not give an
affirmative written notice within 90 days after drillsite selection or by
June 15, 1998, which ever is earlier, then FX will have the right to take
all interest not take by POGC and to operate. The right to exploitation
below Miocene in the target areas shall be shared in the same percentage as
the interests taken by POGC and FX in the first well in each target area.
FX and POGC will use the same operating documents as in their Lublin area
operations, with POGC to serve as operator. If either party wishes to
reduce or relinquish its interest, (other than to Apache Corporation or
subsidiaries) the other party shall have the first right to take such
interest.
5. Western Target Area. The parties have identified one target area
JORDANOW
----------------------------------------------
X X Long Lat.
--- ---- -------------- --------------
413 5510 19. 47' 37.14" 49. 42' 55.84"
413 5525 19. 47' 25.08" 49. 51' 1.22"
428 5525 19. 59' 55.79" 49. 51' 8.39"
428 5510 20. 0' 5.76" 49. 43' 2.96"
as shown on the attached map) in the western Carpathians where FX plans to
apply for oil and gas usufruct rights. FX will grant POGC an option, to be
exercised at the time of drilling the first well in Jordanow, to take up to
33.33% interest in the Jordanow target area. FX and POGC will use the same
operating documents as in their Lublin area operations, with FX to serve as
operator. If either party wishes to reduce or relinquish its interest
(other than to Apache Corporation or subsidiaries), the other party shall
have the first right to take such interest.
IN WITNESS whereof the Parties have caused this Addendum No. 1 to be executed by
their duly authorized representatives effective as of June 1, 1997.
FX Energy, Inc. Polish Oil and Gas Company
Geological Bureau- GEONAFTA
By: /s/ Xxxxx X. Xxxxxxxx, Director By: /s/ Xxxxx Xxxxxxxx, Director
