FX Energy Reports Gas Shows at Grundy-2 Well

Poland's Fences 1 and 2
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FX Energy, Inc. reported that the Company's Grundy-2 well is currently drilling in the Rotliegend sandstone at a depth of 4,625 meters. The top of the Rotliegend was encountered 100 meters higher than expected. The well has now drilled 385 meters of Rotliegend with gas shows.

Current plans are to drill the well to a total depth of 4,660 meters and then log and perform other tests to determine gas saturation and porosity. The Grundy-2 well is in the Company's Fences concession. FX Energy owns a 49% interest in the well; the Polish Oil and Gas Company is the operator and owns 51%.

"The Rotliegend at this depth appears to be tight with less porosity and permeability than shallower wells such as Zaniemysl, Roszkow and Sroda-4 but the gas shows during drilling and coring are encouraging," said Andy Pierce, Vice President of Operations for FX Energy.

If the logs and other tests confirm the potential for production of tight gas from Grundy-2, the formation would need to be stimulated through fraccing before final production testing could be accomplished. If the logs show that there is no possibility for Rotliegend production, the well is expected to be plugged back to the Main Dolomite for a test of that zone.


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