FX Energy announced that a workover rig is on location and re-entry operations on the Zakowo-1 well are underway. Zakowo-1 is the first of four wells in the Zakowo field that the Company plans to re-enter and workover this year. The decision to continue operations on other wells in the Zakowo field will be determined by the Zakowo-1 results. The Zakowo field was discovered in the 1970's but was never put into production due primarily to low commodity prices at that time. All four wells were production tested for both oil and gas.
"We are cautiously optimistic about the potential of the Zakowo field and have taken the first steps in the permitting for production and pipeline facilities in order to bring the wells on line as quickly as possible, if the tests are successful. Obviously, the well bores are over 40 years old and the integrity of the casing is unknown," said Andy Pierce, VP of Operations for FX Energy. "However, if we are able to successfully re-enter the wells and duplicate the initial production tests on the four discoveries, we calculate the expected net cash flow at about $10 million a year at today's prices."
The Zakowo field is located in Block 246, a 240,000 acre concession block immediately to the southwest of the Fences concession area in western Poland and is owned 100% and operated by FX Energy.
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