FX Energy - Montana Project

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Glacier Project, Glacier & Toole Counties, MT

The American Eagle Glacier Project is located in Montana portion of the Alberta Bakken play. The Company and its two partners control Bakken/Three Forks rights in slightly over 75,000 net acres.

Two vertical evaluation wells were drilled during the second quarter of 2011.

The FX 81-3 well was drilled to evaluate the Banff, Bakken, Three Forks, Nisku and Devonian Formations by deepening an existing well in the Southwest Cut Bank Sand Unit where American Eagle and its partners, FX Energy and Big Sky Operating, own a controlling interest in approximately 10,000 net acres about 6 to 10 miles southeast of multiple vertical and horizontal wells being completed by both Rosetta Resources, Inc and Newfield Exploration Company. The 81-3 well encountered oil shows in the Banff, Bakken and Three Forks and is scheduled to be fracture stimulated in August.

The FX American Eagle Big Sky 14-29 well was drilled in May as the first earning well associated with a large farm-in block east of the Cut Bank well structurally higher on the Kevin Sunburst Dome. A core of the Bakken and Three Forks encountered excellent oil saturation within a thick section including the Middle Bakken and Three Forks. The 14-29 well is scheduled to be fracture stimulated in August.

A third vertical assessment well is currently expected to be drilled in September, 2011 to evaluate the eastern portion of the Company's leasehold. Depending upon the results of the testing of the vertical wells, one or more horizontal wells are projected to be drilled during the fourth quarter of 2011.