FX Energy Sets Company Record with 2007 Production Results
Though FX Energy maintains a small presence in the U.S., most of the Company's projects are in Poland. There the Company holds a 100% interest in over 3.1 million acres, and partners with the Polish Oil and Gas Company ("POGC") in an additional 1.1 million acres.
FX Energy's production for the fourth quarter of 2007 is forecast to be approximately 510 million cubic feet equivalent (Mmcfe), an average of 5.5 Mmcfe per day. Production for the full year 2007 is forecast to be approximately 2.3 Bcfe, more than double the amount for all of 2006 and also a record for the Company. Some 80% of the Company's production during 2007 came from its operations in Poland. Two new wells in Poland have been the source of the production increases. FX Energy holds 24.5% and 82% working interest, respectively, in the Zaniemysl and Wilga wells, which started producing in the fourth and third quarters, respectively, of 2006.
The Company has three additional discoveries, Sroda-4, Winna Gora and Roszkow, all of which are located in its core area in western Poland. FX Energy owns 49% of each of these three discoveries (double the 24.5% interest it holds in the Zaniemysl well, which currently is the highest rate producer in the core area). The Company is in the early stages of negotiating gas marketing agreements and, along with its partner, POGC, has begun the administrative and permitting process to build the production and processing facilities for the new wells. Preliminary estimates have these wells beginning production in 2009, although Roszkow could come on line as early as late 2008.
Andy Pierce, FX Vice President of Operations, said, "The production and revenues from our new producing wells, which have been the driving force behind our much improved operating results, together with the production we expect from the three wells waiting to be hooked up, give us great confidence in our ongoing strategy in Poland. We expect these wells to continue providing substantial revenues and cash flow in the future. We do anticipate a decline during 2008 compared to 2007's flush production rates," he continued, "so we expect 2008 will be more meaningful in terms of drilling new wells and building production facilities in our core area. In fact, we expect our Roszkow well, which has the highest production rate potential of all the wells we have drilled to date, should have production facilities completed this coming year and be contributing substantial production beginning in 2009.”
FX Energy’s update for the second half of 2007 includes a preliminary fourth quarter production estimate. The Company also provided a preview of its major upcoming projects. The Company will hold a conference call on Thursday, December 20, 2007, at 4:00 p.m. Eastern. The call will be hosted by David Pierce, President and CEO of FX Energy. Interested parties are invited to listen to the call through a live webcast. To access the webcast, please go to the home page of FX Energy's website, www.fxenergy.com. An archived version of the conference call will be available at the same location following the conclusion of the call.
- FX Energy is Reading Szymanowice-1 Well for Production (Dec 31)
- FX Energy Tests Poland Tuchola-3K Well (Apr 29)
- FX Energy 'Disappointed' over Polish Mieczewo Well (Apr 08)