FX Energy has released test results from the recent Kromolice-2 discovery well. Analysis of the flow test data indicates absolute open flow potential of 47 million cubic feet per day (mmcf/d). The initial production rate is forecast at approximately 4.8 mmcf/d, based on a 5% drawdown. Depth mapping of the Kromolice-2 structure is ongoing based on new seismic processing. The Company plans to provide a proved reserves figure when final mapping is complete. FX Energy holds a 49% non-operating interest.

Production facilities for the Company’s Roszkow well are under construction. The Company anticipates first gas production by the end of 2Q09. Roszkow is forecast to produce approximately 7.5 mmcf/d net to FX. This is forecast to increase total Company production significantly. In the first quarter of 2009, the Company’s total production in the U.S. and Poland averaged 4.2 mmcfe/d.

Production facilities for Kromolice-2, along with two earlier discoveries, Kromolice-1 and Sroda-4, are in the planning and permitting stage. Permitting for the facility and pipeline is anticipated to take about one year, followed by an estimated six months for actual construction. The target for first production is 4Q2010. The three wells will tie into an existing line that currently serves another three wells, including the Company’s Zaniemysl-3 well.

This line is expected to have total available capacity for approximately an additional 14 mmcf/d. This available capacity is approximately 80% of the combined forecast initial plateau rate of the Company’s three new wells. As a result, the Company anticipates adding its 49% share, approximately 7.0 mmcf/d net, to its Polish gas production from Kromolice-1, Kromolice-2 and Sroda-4 together. Cost of the new pipeline and facilities is estimated at approximately $8 million net to FX Energy.

Tags: FX Energy