FX Energy reports that work on the Rusocin-1 location has begun with survey and permitting of the well to be completed before the end of September and site preparation to begin on or about October 1. Drilling is scheduled to begin approximately October 25. The Rusocin-1 is the first well drilled by the Company to test a "pinchout play" in its Fences I project area. The Polish Oil and Gas Company owns a 51% interest and will operate the Rusocin-1 well and FX Energy owns 49%.

Currently the Sroda-4 well in the Company's Fences II project area in western Poland is drilling at a depth below 1,700 meters with a projected target depth of approximately 3,500 meters.