FX
Energy builds value for its shareholders in the oil and gas exploration and
production market with production in the U.S. and Poland. The company’s primary
exploration and production activity targets Poland’s Permian Basin where the
gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin
offshore England. Operator and owner of 51% of the well, PGNiG, is running a
full production test to determine flow rates and reserves.
The
company recently reported that drilling, coring and logging of the Karmin-1
well have been completed. Results of these operations show 30 meters of
gas-saturated Rotliegend sandstone with porosity approaching 30%. The well
flowed at a rate up to 6.7 mmcfg/d on a 22/64″ choke with no water. It will now
be completed for production and is expected to start producing at the start of
2016. The Baraniec-1 well, which began drilling in September of this year, has
run casing to a depth of 3,894 meters at the base of the Zechstein. The well is
a planned test of a Rotliegend sandstone structure. Pending the test’s measure
of success, Baraniec-1 will be connected to the production facility at Lisewo
and could be in production by the end of next year. Both wells are located in
the Fences license.
The
company’s oil and gas revenues for 2013 were $33.3 million, a modest 3%
decrease compared to revenues for the following fiscal year. FXEN expects its
2014 production will net a rise from its 2013 production rates with the start
of production at its Lisewo-2 and Komorze-3K wells. Further, this production
will be included to a full year of production from its Lisewo-1 and Winna Gora
wells, which is believed will be greater than the natural declines in
production from producing wells.
FX
Energy’s strategy is well defined. It believes Poland embodies a unique international
exploration opportunity. Within the past half century, Western companies have
invested billions of dollars into exploration efforts in the British, German,
Dutch and Norwegian sectors in the North Sea area. Industry data suggests these
efforts have resulted in the discovery of trillions of cubic feet of gas and
more than a billion barrels of oil. Up until the late 1990’s, Poland been
closed to exploration by foreign oil and gas companies. As of today,
exploration activities conducted in the Polish onshore Permian Basin area are
only a fraction of those conducted in the western part of the basin. As a
result the company feels the Polish Permian Basin is underpenetrated and,
therefore, has high potential for discovery of significant volumes of oil and
gas relative to the North Sea or other mature oil and gas provinces in the
United States and around the world. One example is that the estimated gross
proved recoverable reserves per well associated with the 11 conventional gas
discoveries in its core Fences concession in Poland are 12.7 Bcf.
As
of the end of 2013, FX Energy estimated oil and gas reserves were 42.0 billion
cubic feet of natural gas and 0.5 million barrels of oil. This amounts to a
total of 44.8 billion cubic feet of natural gas equivalent. The company retains
oil and gas exploration rights in a range of project areas comprising
approximately 2.7 million gross acres in Poland, as well as produces oil from
approximately 10,730 gross acres in Montana and 400 gross acres in Nevada.
For
more information on the company, visit www.fxenergy.com
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