Sweet-16 member FXEN came through with a solid first quarter. I have updated my Net Income and Cash Flow Forecast which will be posted to our Home Page tomorrow. I want to listen to their conference call before I put the final stamp of approval on it.
If they are still on track to complete two more wells in Poland during the 4th quarter (as they announced earlier this year) then they are on track for a very strong year.
FXEN drills big wells in Poland so their production and quarterly results have the potental for significant changes.
The Company has no debt. This one is not for everyone, it has a very high Risk/Reward ratio.
Dan
FX Energy (FXEN) delivers solid 1st quarter
FX Energy (FXEN) delivers solid 1st quarter
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: FX Energy (FXEN) delivers solid 1st quarter
I listened to the FX Energy 1st quarter conference call this morning and I have completed the update to my Net Income and Cash Flow Forecast which Kim will load to the website later today. I've also asked her to load a transcript of their CC. I highly recommend that you look over both documents very carefully and study the FXEN website before you invest or increase your holdings.
FXEN has a very high RISK / REWARD ratio for us and it is not for everyone here. Since they use the Successful Efforts method of accounting, which requires the expensing of dry holes, it is quite possible that one dry well can wipe out the profits for a quarter. That is why investors should focus on Cash Flows per share and not EPS but Wall Street often does not and it can cause these small-caps to have wild swings.
I do believe the upside on this one is much higher than the downside. Based on their 2009 reserve report, prepared by 3rd party engineers, the stock is trading at the present value of their proven reserves, about $4/share. They are drilling wells this year that could triple proven reserves so you can see the upside potential is very high.
FXEN is exactly the kind of company I'm constantly on the lookout for. It has taken them years to get to this point but they are on the verge of a significant increase in production. They reported record production in the first quarter and it could double again by year-end as they are currently completing three new wells that should all be on-line this coming winter, just in time to sell gas into the high priced Polish gas market. Natural Gas prices in Poland are much higher than they are in the U.S.
Dan
FXEN has a very high RISK / REWARD ratio for us and it is not for everyone here. Since they use the Successful Efforts method of accounting, which requires the expensing of dry holes, it is quite possible that one dry well can wipe out the profits for a quarter. That is why investors should focus on Cash Flows per share and not EPS but Wall Street often does not and it can cause these small-caps to have wild swings.
I do believe the upside on this one is much higher than the downside. Based on their 2009 reserve report, prepared by 3rd party engineers, the stock is trading at the present value of their proven reserves, about $4/share. They are drilling wells this year that could triple proven reserves so you can see the upside potential is very high.
FXEN is exactly the kind of company I'm constantly on the lookout for. It has taken them years to get to this point but they are on the verge of a significant increase in production. They reported record production in the first quarter and it could double again by year-end as they are currently completing three new wells that should all be on-line this coming winter, just in time to sell gas into the high priced Polish gas market. Natural Gas prices in Poland are much higher than they are in the U.S.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group