FX Energy's Kromolice-2 Tests Positive Gas Flow

FX Energy reported a successful drill stem test (DST) of the Company's Kromolice-2 well. Located in west central Poland, this exploratory well flowed gas with no water in this first DST.

Jerzy Maciolek, Vice President International Exploration, remarked, "This DST is very encouraging, but it is just the first test of this well. We’ve only drilled into the top of the structure so far. We have more drilling, coring and testing to do before we will know whether this is a commercial gas deposit. So far, however, everything looks just like we expected."

At the time of the DST the Kromolice-2 well had drilled a total of 8 meters of porous Rotliegend sandstone. The well will be drilled another 45 meters or so, with additional cores and logs to determine the full extent of the pay zone and other reservoir parameters. The nearest existing discovery is the Company's Kromolice-1 well, 2 kilometers to the northeast in another gas field. The Polish Oil and Gas Company is the
operator and owns 51%; FX Energy owns 49% of the working interest.

The Kromolice South Target

The Kromolice-2 well is being drilled on the Kromolice South prospect, a structural trap located in the Company's "Fences" concession. Since 2004, the Company has drilled seven other structural traps in the Fences concession. Five of the seven wells have achieved commercial rates of production. In the aggregate they discovered over 100 Bcf of gas in four separate gas fields. Kromolice-2, if successful, would make the Kromolice South structure a fifth gas field. Kromolice-2 is the third well to be drilled on the Company's new 3D seismic acquired in 2007.