FX Energy Begins Construction on Production Facilities

FX Energy says that construction has started on the Zaniemysl gas field production facilities in the Company's Fences I project area in Poland. Gas production from the Zaniemysl field is on schedule to begin in the third quarter of this year.

The Company also provided an update on operations in other projects in Poland.

• The Wilga gas/condensate field production facilities are scheduled to begin construction in early July with production from the well to begin in the third quarter.
• Following a technical review of the 2-D data over the Winna Gora structure, the drillsite has been moved. As a result of this change, all permits had to be reissued and the well is now scheduled to begin drilling in July.
• The Roskow-1 well in the Fences II project area has been proposed for drilling with operations expected to begin in the third quarter.
• A 130 square kilometer 3-D seismic acquisition program over the Sroda area has been approved for this year, with field operations scheduled for the third and fourth quarters.
• A 2-D seismic acquisition program in the Lubinia area and a second 2-D program north of the Sroda 3-D in the Fences II project area have been approved and will start immediately.
• A technical meeting has been scheduled for late June to consider either new drilling or 3-D seismic in the Pinch-out area in Fences I as a 2006 operation.

FX Energy, Inc. holds a land position of over 1.7 million acres in a known hydrocarbon region in western Poland's Permian Basin. The Permian Basin's gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England, and represents a largely untapped source of potentially significant gas reserves. FX Energy is exploiting this untapped potential in the belief that it can create substantial growth in oil and gas reserves and cash flow for its stockholders. The Company trades on the Nasdaq National Market under the symbol FXEN.