FX Energy, Inc. (FXEN) Prepping for Production in Polish Permian, Update Issued on Plawce-2 and Tuchola-3K Wells

FX Energy, for whom the majority of hydrocarbon exploration and production activity occurs on their concessions in Poland’s rich Permian Basin, reported details today of their ongoing test programs for the Tuchola-3K and Plawce-2 wells.

This NW European Permian Basin holds numerous other sandstone reservoirs of carboniferous coal beds sealed by Zechstein evaporates, offering two distinct horizons, the Basal Limestone (Ca1) and the Main Dolomite (Ca2). Ca1 has seen exploration since the early 80′s, producing ample gas and the Ca2 has more recently proved oil and gas bearing in stratigraphic plays, readily apparent from 3D seismic analysis.

The first well, Tuchola-3K (100% WI), is operated by FXEN and sits on some 881k acres of concessions (a whopping 1,377 sq. miles of concessions acquired back in 2008). FXEN is plugging the Tuchola back to about 9k feet and is prepping to run a 7-inch liner down to around 8,825 feet for the testing work, with plans to begin initial production tests as early as next week.

Coming out of this testing, evaluations will be performed to ascertain if Tuchola-3K should be completed as a production well or not, and in the interim FXEN is designing a 3D seismic program to map the structure, as well as other notable leads within the concession. Everything is lined up for a June kick off to field work that should help to flesh-out additional prospects and the budget has enough leeway for another two wells this year if the exploration work produces any promising targets.

The other well in today’s report, the Plawce-2, is on the 885k-acre Fences concession blocks (some 1,271 sq. miles), where the Polish Oil and Gas Company (PGNiG) is a 51% working interest owner/operator, with FXEN holding 49% WI. Here, a series of three separate fracturing operations have been performed between 12.3k feet and around 13.4k feet, each in about a 16.4-foot zone.

Coming weeks will see a roughly 5 to 7 day cleanup/flowback operation done on each zone in preparation for analyzing which of the zones are producing enough gas to warrant comprehensive production testing. This testing will validate completion of the Plawce-2 as a production well or not, and the company is hard at work in the interim securing the necessary permitting and designs for a production facility on the site.

In addition to these Polish interests, FXEN has some modest cash flow-oriented domestic wells on around 10k acres in Montana’s Southwest Cut Bank Sand Unit ,with around PV-10 Value of some $10.4M (594k bbls of proved reserves), as well as another 400 gross acres of limited production in Nevada.

For more info on FX Energy, visit www.FXENergy.com

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