FX Energy Details Significance of Sroda Discovery

FX Energy reported that drilling and logging of the Sroda-4 well is complete. The well was drilled to a total depth of 3,700 meters. The logs show a net productive reservoir in the Rotliegendes sandstone of 33 meters with average porosity in excess of 20 percent. "The Sroda-4 is an unqualified success," said David Pierce, the Company's CEO. "It is exactly what we hoped for and gives us even greater confidence in our upside estimates for Sroda and other structures in the immediate vicinity."

A production liner will be run in the well with a production test to follow. The Company will meet with its partner, the Polish Oil and Gas Company (POGC), later this month to firm up plans to drill the Sroda-5 well and acquire new 2-D and 3-D data over a number of structures in the Sroda vicinity, including Sroda, Sroda NE and Winna Gora.

"Sroda-4 has established a significant column of producible gas and confirms that excellent reservoir properties exist in the aeolian facies of the Rotliegendes (Lower Permian) at this depth. The 33 meter gas column coincides with the mapped closure which indicates that the potential gas accumulation may be as large as the Company's estimated unrisked gross maximum of 400 bcf. The success of Sroda reduces the risk of other similar structures in the vicinity and will lead to an active exploratory drilling campaign in Fences II," said Richard Hardman, head of FX Energy's technical team.

In a technical presentation earlier this month FX Energy reported that the Company believes the proposed seismic program in the Sroda area alone will provide drilling targets on structures that may contain unrisked estimated maximum potential of approximately 1.5 tcf of gas. FX Energy owns a 49% interest in the Fences II area.