FX Energy Begins Drilling Rusocin-1 Well in Poland

FX Energy reports that the Rusocin-1 well started drilling on October 29, 2004. The well is located in the Company's Fences-1 project area in Poland and is planned to test a Rotliegendes sandstone target at a depth of approximately 2,500 meters. The Rusocin-1 location is approximately 7 kilometers south of the Zaniemysl-3 discovery well announced by FX Energy earlier this year. The Polish Oil and Gas Company ("POGC") owns a 51% interest and will operate the Rusocin-1 well and FX Energy owns 49%.

The Sroda-4 well located in FX Energy's Fences II project area has reached the top of the Zechstein formation at a depth of approximately 3,000 meters. The well will be logged and 9 5/8 inch casing will be run and cemented. Upon completion of these operations, the approximately 620 meters of Zechstein consisting of salts, anhydrites, dolomites and limestones will be drilled, logged, cased and cemented prior to drilling into the Rotliegendes sandstone target.