Sroda 5 Well - Poland
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FX Energy, Inc. says that the log data on the Sroda-5 well indicate the well does not have a sufficient gas column to warrant the cost of completion and will be plugged. "We drilled a thick section of porous reservoir rock with a good seal and trapped gas. However, we did not find enough of the reservoir rock above the gas water contact to make the well economic," noted David Pierce, president and CEO of FX Energy. "The Sroda-5 well illustrates all of the reasons why our acreage in western Poland has such high potential, and also highlights the risk. This geophysical challenge is the reason we
build in dry hole costs into our business model. Fortunately, the economics of the successful wells like Sroda-4 and Zaniemysl are strong enough to more than cover these costs and still remain very attractive."
"We remain firmly committed to exploration and production in the Fences areas. We are about two weeks away from the start of drilling on the first well in our 100% owned southern block, Fences III. We are about three weeks away from completing a major technical review of our new leads and prospects which we expect will give us several new wells to propose for immediate drilling. And we are about six months away from first production from two of our earlier discoveries, Zaniemysl and Wilga. We anticipate that 2006 will be
a very busy and successful year," continued Mr. Pierce.