FX Energy, Inc. has reported a successful drill stem test (DST) of the Company's Kromolice-1 well. Located in west central Poland, this exploratory well flowed gas with no water in this first DST. The nearest existing gas discovery is the Company's Sroda-4 well some 5 kilometers to the southeast.

Andy Pierce, Vice President of Operations, remarked, "We are encouraged with this initial DST, but keep in mind we've only drilled a few meters into the pay zone so far. We have more drilling, coring and testing to do before we can say for sure whether this is a producible gas deposit. But so far everything looks just like we expected."

At the time of the DST the Kromolice-1 well had cored a total of 4.5 meters of porous Rotliegend sandstone. The well will be drilled another 50 meters or so, with additional cores and logs to determine the full extent of the pay zone and other reservoir parameters. The Polish Oil and Gas Company is the operator and owns 51%; FX Energy owns 49% of the working interest.

The Kromolice-1 well is being drilled on the Kromolice North prospect, a structural trap located in the Company's "Fences" concession. During the previous four years the Company has drilled five other structural traps in the Fences concession. Four of the five wells achieved commercial rates of production. Kromolice and the five previous wells were drilled on separate structural traps. Kromolice-1 is the first well to be drilled on the Company's new 3-D seismic acquired in 2007.

The Company is currently drilling a seventh structural trap well, Sroda-6, and plans an eighth well to test the Kromolice South structural trap later this year. Both of these wells are located within approximately 5 kilometers of the Kromolice-1 well. In addition, the Company is drilling a deep test, Grundy-1, on the east side of the Fences concession. The Grundy well is a high risk test of both the Main Dolomite and the Rotliegend much deeper in the basin.

David Pierce, president of FX Energy noted, "We are very pleased to be on track with this year's planned operations. The fact that we have three wells drilling at the same time is very satisfying. We are building momentum in our core area and we hope that the results from Kromolice-1 will provide even more encouragement."

Tags: FX Energy