FX Energy Signs Contract for Wilga-2 Pipeline and Facilities

FX Energy has signed a contract with PBG S.A., a Poland based construction company for the development of the Wilga-2 gas well in Poland. The contract calls for the construction of surface facilities, a 17 kilometer pipeline and connection to the PGNIG S.A., transmission system. Completion of the project is expected in July 2006.

The Wilga-2 well was drilled in 2000 and has proved reserves of 6 bcf and 250,000 barrels of condensate. The well is expected to produce at a rate of 4 mcf of gas and 230 barrels of condensate per day. FX Energy is the operator of the well and owns an 82% interest. The Polish Oil and Gas Company (POGC) owns 18%.

The Company also reported that the Sroda-5 well that began drilling on September 12, 2005, is drilling ahead at a current depth of approximately 1,600 meters. The well is expected to test a Rotliegend sandstone target at a depth of approximately 3,600 meters.

The Lugi-1 well in the Company's Fences I project area has a rig on location and should begin drilling later this week. POGC is the operator of the Lugi-1 well and owns a 51% interest. FX Energy owns 49%.