SALT LAKE CITY, Oct. 30, 2012 /PRNewswire/ -- FX Energy, Inc. (NASDAQ: FXEN) reported today that after evaluating the data from the Kutno-2 well a decision to plug and abandon the well has been made. Plugging operations are underway. Although gas shows and porosity of up to 6% were seen in the upper Rotliegend, the well flowed only salt water. The Rotliegend in the Kutno-2 well appears to be fluvial in origin, with abundant clays, dolomites and shales intermixed with sands.
David Pierce, Chief Executive Officer of the Company, said, "We knew from the outset that the big risks in this well were drilling risk, gas quality and reservoir quality. We overcame the first two risks, but not the third. We had hoped that Kutno might contain the classic dune sands that we continue to encounter in the Fences concession. That would have been a very big prize, but unfortunately the reservoir quality is too poor to make Kutno-2 commercial."
"While we are disappointed by the outcome of this well, it is a known and unavoidable risk of the exploration business. The key is to keep a balance between lower risk drilling and production development, such as in the Fences concession, and high potential exploration in our other concession acreage in Poland."
The Polish Oil and Gas Company (PGNiG) has earned a 50% interest in the Kutno concession in connection with its participation in the Kutno-2 well.
About FX Energy
FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration and production activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England. The Company trades on the NASDAQ Global Select Market under the symbol FXEN. Website www.fxenergy.com.
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