SALT LAKE CITY
May 20, 2012
FX Energy, Inc.
(NASDAQ: FXEN) today announced it has added two new exploratory wells to those already scheduled for drilling in 2012. The new wells, Tuchola-3 and Frankowo, will test prospects in two of the Company's 100%-owned concessions in
. These wells will enable the Company to increase the momentum of its most active drilling year to date. The new wells will fit within the previously reported
$60 to $70 million
capital budget. The Company expects to fund its full capital budget from existing cash and liquidity resources.
The Frankowo well is located in FX's 100% held Block 246 concession in west central
. Rotliegend gas at approximately 2200 meters will be the prospective target for this well. Though an exploratory or "wildcat" well, the Company has a history of successfully pursuing Rotliegend production in
. Total costs for this well are expected to be around
The Tuchola-3 well is in the Company's 100% held Edge concession in north central
. Permian gas at approximately 2100 meters and Devonian oil at possibly 3150 meters will be the Tuchola-3 targets. Like the Frankowo well, the Tuchola-3 is also a wildcat well. Costs for the Tuchola-3 well are expected to total around
. Both wells are expected to start drilling in the third quarter and test before year-end 2012.
The two new wells are in addition to the Kutno-2 and Komorze-3 wells already drilling in
, and the Mieczewo, Lisewo-2 and Lisewo-SE wells expected to start drilling in the second half of the year.
"A successful test at Kutno, Tuchola-3 or Frankowo when fully developed could add materially to our oil and gas reserves and production potential in
," said Zbigniew Tatys, the head of operations for FX Energy in
. "Perhaps equally important, success in any of these new areas would support our belief that
has considerable undiscovered hydrocarbon potential and can reward serious exploration effort."
Frankowo well to test potentially significant Rotliegend gas target
All of the Company's current Polish gas production comes from prolific Rotliegend sands in the 49% owned Fences concession. Immediately southwest of the Fences concession, the Company holds 100% interest in the 240,000 acre Block 246 concession. The Frankowo well targets gas potential in Rotliegend sands in Block 246 at the relatively shallow depth of 2200 meters. The immediate target has potential for up to approximately 50 Bcf of recoverable gas on full development (unrisked). Moreover, a successful test could be indicative of gas charged Rotliegend potential over a larger area in Block 246.