FX Energy 4Q 2009 Rate Nearly Triples
FX Energy reported production figures for the fourth quarter and full year 2009. Total oil and gas production for the fourth quarter of 2009 was 1.08 Bcfe (billion cubic feet equivalent), or 280 percent of the 0.39 Bcfe produced in the fourth quarter of 2008. Full year 2009 production was 2.26 Bcfe, or 136 percent of the 1.67 Bcfe total produced in 2008.
New Gas Production Drives Results
The production increase for the Company in the 2009 fourth quarter was primarily the result of the Roszkow well in Poland, which began producing in late September 2009. This well was drilled and completed in 2007. It encountered 34 meters (110 feet) of net pay in a Rotliegend sandstone reservoir. The Roszkow well has proved reserves of 51.5 Bcfe, of which FX Energy owns 49%.
Higher Production Rates Expected to Continue
"We believe the 2009 fourth quarter production increase represents a significant inflection point for us," said David Pierce, president and CEO of FX Energy. "Production now is of a magnitude to make an important contribution to capital spending. Not only was the production increase dramatic, but these new higher levels should be relatively sustainable. Gas wells in the Fences area, like the Roszkow well, have historically sustained their initial production rates for several years. We think the Company's current production rate of 11.5 MMcfed (million cubic feet equivalent per day) is a relatively sustainable rate. In addition, we anticipate putting three more wells in three other Polish gas fields on production near the end of this year, which should boost production even higher and for a longer period."
"Moreover," continued Pierce, "Roszkow and the production results we are reporting today represent a very strong endorsement of our focus on the Polish Permian Basin. Just as the North American Permian Basin has been very good to US producers, and the western European Permian has been good to North Sea producers, we believe that the eastern European Permian could hold multiple, long-term, high potential exploration targets for us. Our discoveries with the Roszkow well and our six other commercial discoveries to date in our Fences concession give us even more confidence in the eastern European Permian."
- 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)