FX Energy to Drill Sroda-5 & Lugi-1 Wells in Poland

FX Energy reports that the Board of the Polish Oil and Gas Company, has approved for tender the drilling of the Sroda-5 and Lugi-1 wells. In addition, the Board approved for tender the acquisition of approximately 400 km of 2-D seismic in the Fences I and II areas.

The Sroda-5 well will be drilled southeast of the successful Sroda-4 discovery that was completed earlier this year. The Lugi-1 well will test a pinchout target approximately 9 km east of the Rusocin-1 discovery well that was completed in late 2004. FX Energy owns a 49% interest in the wells; POGC is the operator and owns a 51% interest.

"We are very pleased to be drilling a second well in the Sroda area following our successful Sroda-4 discovery and to be acquiring additional seismic over a number of prospects, including the Winna Gora and Sroda Northeast prospects, that we believe will generate drilling locations for the continued exploration and development in Fences II. In addition, this seismic will cover prospects in the pinchout region of the Fences I area where additional drilling by the Company is also planned for 2006," said David Pierce, president of FX Energy.

The Company expects to sign contracts in August following completion of the tender and to begin field operations in September. Drilling results from both wells are expected later this year.