FX Energy will begin drilling its first exploratory well in the Fences II project area in Poland shortly. The Company's management and technical team, including Director Richard Hardman, are meeting this week with the Polish Oil and Gas Company to select a drill site on the Sroda structure already mapped and defined by POGC and the Company's technical team. The Company and POGC will initiate the formal procedures required to comply with the environmental protection laws and related tender regulations. "Working closely with our partner POGC, we expect to have the Sroda well drilling in the first quarter of 2004," said David N. Pierce, president of FX Energy. "We are absolutely thrilled to be drilling our first well in the Fences II area."
The Fences II project area covers approximately 670,000 acres in western Poland's Permian Basin. FX Energy has a 49% interest in Fences II and POGC holds 51%.