FX Energy Reports on Sroda-6, Agrees on 2 New Polish Wells
FX Energy has reported that the Sroda 6 well drilled 30 meters of good quality Rotliegend reservoir rock removing one of the major uncertainties of the Sroda City structure. Unfortunately the well came in significantly structurally low to prognosis and on drill stem test recovered only gas cut brine. However, while the rig remains in place geophysical field work is being conducted to determine whether a higher structural position can be reached by deviating the current well and thereby testing the closure in an optimal location.
Jerzy Maciolek, VP of International Exploration, noted, "Sroda-6 illustrates the tremendous challenge we face converting time data into depth maps. It is a challenge we share with our fellow Rotliegend explorers in the southern North Sea. However, we are cautiously optimistic that the geophysical work we are doing over the next few days will show us a higher structural position near to our current down hole location."
The Polish Oil and Gas Company owns 51% and operates the Sroda-6 well. FX Energy owns 49%.
Preliminary Agreement on Northwest and Warsaw South Concessions
FX Energy also announced that it has reached a preliminary agreement with an unnamed company to explore two 100%-owned exploration blocks in Poland, each approximately 250,000 acres. One of the blocks is located in the Company's 1.2 million acre Northwest Concession; the other block is in the 0.9 million acre Warsaw South Concession. Plans include drilling one well in each block in 2009. The first of the two wells is tentatively
planned to start drilling in March 2009. FX will be operator and will retain 50% interest. The preliminary agreement is subject to negotiation and documentation of detailed terms and to approval by the boards of both
companies. Detailed terms are expected next month and a definitive agreement before year end.