FXEN

[setliff]

FX Energy Begins Drilling Komorze-3K Well in Poland 04/02 06:00 AM

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SALT LAKE CITY, April 2, 2012 /PRNewswire/ -- FX Energy, Inc. (FXEN:$5.44,00$-0.09,00-1.63%) today announced that drilling has commenced on the Komorze-3K well in the Fences concession in central Poland. The Komorze-3K well targets one of five satellite structures located near the Lisewo-1 discovery that was completed in 2011. The five satellite structures have an estimated 60 Bcf in gross potential. PGNiG is the operator of the well and the Fences concession and owns a 51% interest; the Company owns 49%.

"We are currently in the design phase of the facilities to bring the Lisewo-1 well, and if successful, the satellite wells into production in 2013," said Andy Pierce, VP of Operations for FX Energy. "In addition, we are processing and interpreting the 3-D seismic data on the structural extension southeast of the Lisewo-1 discovery. We plan to drill two more wells in this area yet this year."

The Company also reported that the Kutno-2 well in Poland is currently drilling below 4,300 meters (14,100 feet) with a projected total depth of 6,450 meters (21,160 feet).

About FX Energy (FXEN:$5.44,00$-0.09,00-1.63%)

FX Energy (FXEN:$5.44,00$-0.09,00-1.63%) is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration and production activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England. The Company trades on the NASDAQ Global Select Market under the symbol FXEN. Website www.fxenergy.com.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. Forward-looking statements are not guarantees. For example, exploration, drilling, development, construction or other projects or operations may be subject to the successful completion of technical work; environmental, governmental or partner approvals; equipment availability, or other things that are or may be beyond the control of the Company. Operations that are anticipated, planned or scheduled may be changed, delayed, take longer than expected, fail to accomplish intended results, or not take place at all. Actual production over time may be more or less than estimates of reserves, including proved and P50 or other reserve measures.

In carrying out exploration it is necessary to identify and evaluate risks and potential rewards. This identification and evaluation is informed by science but remains inherently uncertain. Subsurface features that appear to be possible traps may not exist at all, may be smaller than interpreted, may not contain hydrocarbons, may not contain the quantity or quality estimated, or may have reservoir conditions that do not allow adequate recovery to render a discovery commercial or profitable. Forward-looking statements about the size, potential or likelihood of discovery with respect to exploration targets are certainly not guarantees of discovery or of the actual presence or recoverability of hydrocarbons, or of the ability to produce in commercial or profitable quantities. Estimates of potential typically do not take into account all the risks of drilling and completion nor do they take into account the fact that hydrocarbon volumes are never 100% recoverable. Such estimates are part of the complex process of trying to measure and evaluate risk and reward in an uncertain industry.

[prince_jake_33]

FXEN looks very interesting. Dans last update was in Jan so far as I can tell. Has he done a more recent update.
Fxen stated in their last quarterly report they would double their production during 2012. Maybe Dan could estimate new production numbers and cash flow.
It looks to me like the high growth rate is difficult to analyze

[dan_s]

I will update my forecast this week.

Keep in mind that FX Energy uses the Successful Efforts method of accounting. Therefore, all exploration costs are expensed as incurred, making if very difficult to show a profit during the growth period.

If they can get Kutno-2 to TD the share price should move up.

If you have an interest in FXEN the best advice is to take the time to go over their latest presentation, which can be found on their website.

IMO, FXEN is a "lottery ticket" stock. Kutno has HUGE potential but it is a high risk wildcat well.

[prince_jake_33]

OK thanks Dan. I will also await your update

[dan_s]

I have updated my Net Income and Cash Flow Forecast for FX Energy and posted it under the Watch List Tab. Note that the Excel version is near the bottom of the list.

FXEN is a high risk / high potential stock. Where this one goes depends on the outcome of the Kutno-2 well. A lot of shareholders are in this one for that HUGE prospect. If the well is a dry hole they will dump the shares, which could be a great time to buy.