FX Energy provided an operations update on its oil and gas operations for the first half of 2007. The Company also provided a view of its major upcoming projects. Though the Company 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 in an additional 1.1 million acres.

New Wells in Poland Lead to Record Production and Revenues FX Energy's production for the second quarter of 2007 was 593 million cubic feet equivalent ("Mmcfe"), an average of 6.5 Mmcfe per day. This is nearly triple the production rate for the second quarter of 2006 and a record for the Company. Production for the first half of 2007 was 1,193 Mmcfe, more than triple the amount for the first half of 2006 and also a record for the Company. These production records also led to record revenues for the second quarter and first half of $4.5 and $8.7 million, respectively. (For full financial results, please see the Company's press release of Aug. 8, 2007.) Some 75% of the Company's production during the first half came from its operations in Poland. The driving force behind these production increases has been two new wells in Poland. FX Energy holds 24.5% and 82% working interest, respectively, in the Zaniemysl and Wilga wells, which started producing in the fourth quarter of 2006. The Company has three more wells, all located in its core area in western Poland and all 49%-owned, that have been completed as new discoveries. They will be added to the Company's production base following permitting and construction of production facilities.

Fences Concession: Existing Rotliegend Development and New Exploration for 2007/2008

During the first half of 2007, the Company continued to focus on the natural gas-bearing Rotliegend sands in the core area of its Fences concession in western Poland. This concession covers approximately 0.85 million acres. Building on two previous gas discoveries, Zaniemysl-3 and Sroda-4, the Company made two more new gas discoveries this year: Winna Gora in the first quarter of 2007 and Roszkow in the second quarter. These discoveries bring the Company's success rate in its core area to 80%.

The Company's first discovery in its core area, Zaniemysl-3, currently produces 10 Mmcf/d (gross); the Company holds 24.5% interest in the well. The Company now has three additional 49%-owned wells to bring on line in the core area. Two of these wells, Sroda-4 and Roszkow, could come on line late 2008, and are anticipated to begin production at rates of 5 Mmcf/d (gross) and 10 Mmcf/d (gross), respectively. The Winna Gora well is capable of another 4 Mmcf/d (gross), though the Company is considering a horizontal leg to generate higher production rates. Together these new wells could increase the Company's net production from the core area by approximately 800%.

Zbigniew Tatys, FX Energy Country Manager, remarked, "With these continuing successes and a lot more potential to develop, we intend to devote even more time and funds to our core area in the Fences concession. We hope that our intensified exploration efforts will lead to additional discoveries and production over the next several years."