FX Energy Signs $25 Million Credit Facility for Polish Ops
FX Energy, Inc. said that its wholly owned subsidiary, FX Energy Poland Sp. z o.o., has signed a US$25 million Senior Facility Agreement with The Royal Bank of Scotland plc (RBS). Funds from the Facility are to cover infrastructure and development costs and will be secured by FX Energy's commercial wells and production in Poland.
"Our current cash combined with forecast revenues will be sufficient to cover our 2007 exploration budget including the Sroda 3-D and Sroda appraisal wells. This credit facility allows us to go a step further, as it will cover the first stage of expected development and infrastructure costs at Sroda," said David Pierce, president of FX Energy.
Colin Bousfield, Senior Director, Oil & Gas, in the Project & Export Finance Division of The Royal Bank of Scotland plc, commented at the loan signing: "RBS is delighted to have been able to provide a US$25 million borrowing base facility to fund FX Energy's continuing activities in Poland, including the development of existing and future discoveries. We look forward to further developing the relationship in the future."
FX Energy, Inc. holds a land position of 250,000 acres around its Wilga discovery and over 3.2 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.
- FX Energy is Reading Szymanowice-1 Well for Production (Dec 31)
- FX Energy Tests Poland Tuchola-3K Well (Apr 29)
- FX Energy 'Disappointed' over Polish Mieczewo Well (Apr 08)