This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Gas Price Increase To Drive FX Energy's Revenues Higher; New Production Facilities And Pipelines Should Do The Same; Drilling Operations To Accelerate









SALT LAKE CITY, April 16, 2012 /PRNewswire/ --  FX Energy, Inc. (NASDAQ: FXEN) today announced that the Polish Energy Regulatory Agency has increased wholesale gas tariffs in Poland by 16.9% as of March 31, 2012. By virtue of its gas contracts with PGNiG, the Company's partner and operator of most of its producing wells in Poland, the price increase became effective for FX Energy on April 1, 2012. The new tariff is expected to remain in place through at least December 31, 2012. The benefits of the increase will apply to virtually all of the Company's gas production in Poland, representing approximately 91% of current Company-wide production on a gas equivalent basis, with the remainder being predominantly oil in the USA.

"Based on the current exchange rate, we are selling gas today at a weighted average price of $7.40 per thousand cubic feet at the wellhead in Poland, dramatically higher than today's sub- $2.00 Henry Hub spot price. In addition, almost all of our operating costs in Poland are fixed, so the higher revenues from this price increase will drop directly to our bottom line," said Clay Newton, VP of Finance for FX Energy.  "We will use the increased revenues to support our growing exploration, development and production projects in Poland, where currently there are two drilling rigs and two pipeline construction crews at work on our projects."

Facilities and Pipeline Construction

The Company reported that construction has started on the pipeline expansion downstream from the KSK production facility in the Fences concession in Poland. The KSK production facilities have been producing since last year, but the rate has been constrained by limited throughput at a river crossing. Crews have started work on a two kilometer twin line at the crossing that will double capacity and allow full production from the KSK facility. The Company anticipates the new line will become operational during or slightly before the third quarter 2012. Thereafter, production, net to the Company, is expected to increase to as much as 14 to 15 million cubic feet equivalent per day (MMCFE/D).

Separately, crews have started construction on a new production facility and pipeline that will serve the Winna Gora well in the Fences concession. Permitting along a short stretch of the pipeline remains ongoing, but crews are laying pipe along the remainder of the eight kilometer line. The Company anticipates first production in the third quarter of 2012. Production from the well could add up to 2 MMCFE/D to the Company's production volumes.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs