FX Energy is now in our Small-Cap Portfolio.
Salt Lake City, October 22, 2012 – FX Energy, Inc. (NASDAQ: FXEN) issued an update on two wells currently drilling in Poland.
Kutno-2 Well
The Kutno-2 well has been drilled to a total depth of 6,577 meters. The next planned operation is to run a drill stem test (“DST”) through the zones that had the best gas shows and porosity based upon drilling and log data from the wellbore. The DST is expected to begin within the next two to three weeks.
Kutno-2 is being drilled together with the Polish Oil and Gas Company (PGNiG). PGNiG will earn a 50% interest in the Kutno concession in connection with its participation in the Kutno-2 well.
Frankowo-1 Well
The Frankowo-1 well has been drilled to a current depth of approximately 2,100 meters. A DST in the top 28 meters of the Rotliegend sandstone reservoir, the primary target in the well, recovered gas cut brine and no free gas. The Company plans to continue drilling and coring the well to a total depth of 2,200 meters to determine the thickness and reservoir properties of the Rotliegend. This data will be critical to the Company’s near term exploration plans for the 241,000 acre Block 246, where the Company holds a 100% interest.
After final coring and logging, the Company plans to plug the Rotliegend, then prepare and run a DST in the Main Dolomite, where a 149 foot thick section of gas saturated reef with good fracture and matrix porosity was encountered.
"We are fortunate to have the opportunity to explore Block 246,” said Jerzy Maciolek, Vice President of International Exploration. “We selected this block because a large portion of it is unexplored and appears to have good hydrocarbon potential in the Main Dolomite, Rotliegend and Carboniferous. The Frankowo-1 well has given us encouraging data from both the Main Dolomite and the Rotliegend. Of course we are disappointed that the Rotliegend does not trap at this location, but hopeful about our upcoming test of the Main Dolomite.”
The Frankowo-1 well is located on the Company’s 100% owned Block 246 concession.
FX Energy - Operations Update October 22
FX Energy - Operations Update October 22
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: FX Energy - Operations Update October 22
any educated comments re this report---judging by mkt reaction it is bad news??
Re: FX Energy - Operations Update October 22
dan, joe, what's your take on this?
NEW YORK (TheStreet) -- FX Energy (Nasdaq:FXEN) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
NEW YORK (TheStreet) -- FX Energy (Nasdaq:FXEN) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
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wilmawatts
- Posts: 685
- Joined: Fri Apr 01, 2011 10:12 am
Re: FX Energy - Operations Update October 22
It is computer generated rating I am told. If you like a black box application to investing follow the Street. You need to read the Barrons expose on them a while back.
Assets support FXEN market price in my opinion. Make your own call here. I have some additional informaiton but cannot share at this point, maybe relevant, maybe not.
Assets support FXEN market price in my opinion. Make your own call here. I have some additional informaiton but cannot share at this point, maybe relevant, maybe not.
Re: FX Energy - Operations Update October 22
FXEN is a "Lottery Ticket" with limited downside risk. The company has a solid base level of production and they are bringing on some new wells that should increase production to around 16 MMcfpd in 2013. Polish natural gas prices should be very strong this winter. See my updated forecast model under the Watch List Tab.
The company appears to have 20% to 25% annual production growth locked in.
Drilling several wells now that have "Home Run" potential.
Note that FXEN uses the Successful Efforts method of accounting. Therefore, all exploration costs are expensed as incurred. Under the "Full Cost Method", these expenditures would be capitalized and recovered through future DD&A. Since FXEN is in the middle of an active exploration phase, Successful Efforts really keeps down reported earnings but it reduces DD&A expense when projects move into production.
All small-caps have more risk but FXEN now has more than enough cash flow from operations to survive. TheStreet rating is meaningless since you really can't compare Successful Efforts companies to Full Cost companies. It is Apples to Oranges.
The company appears to have 20% to 25% annual production growth locked in.
Drilling several wells now that have "Home Run" potential.
Note that FXEN uses the Successful Efforts method of accounting. Therefore, all exploration costs are expensed as incurred. Under the "Full Cost Method", these expenditures would be capitalized and recovered through future DD&A. Since FXEN is in the middle of an active exploration phase, Successful Efforts really keeps down reported earnings but it reduces DD&A expense when projects move into production.
All small-caps have more risk but FXEN now has more than enough cash flow from operations to survive. TheStreet rating is meaningless since you really can't compare Successful Efforts companies to Full Cost companies. It is Apples to Oranges.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: FX Energy - Operations Update October 22
SALT LAKE CITY, Oct. 25, 2012 /PRNewswire/ -- FX Energy, Inc. (FXEN) today reported third quarter 2012 production of 1.2 billion cubic feet of gas equivalent (Bcfe), compared to 1.1 billion cubic feet equivalent (Bcfe) during the third quarter of 2011. Total production for the first nine months of 2012 was 3.5 billion cubic feet of gas equivalent (Bcfe), compared to 3.3 billion cubic feet equivalent (Bcfe) during the first nine months of 2011.
Daily production for the third quarter of 2012 was approximately 13.2 Mmcfe/d, compared to 12.0 Mmcfe/d during the same quarter of 2011, an increase of 10%. Third quarter 2012 production would have averaged nearly 14.0 Mmcfe/d but for the unexpected shut down of the Company's Zaniemysl well for nearly a month for unscheduled maintenance.
Production for the first nine months of 2012 was approximately 12.8 Mmcfe/d, compared to approximately 12.0 Mmcfe/d during the first nine months of 2011, an increase of 7%. Production at October 20, 2012, was approximately 13.7 Mmcfe/d.
Daily production for the third quarter of 2012 was approximately 13.2 Mmcfe/d, compared to 12.0 Mmcfe/d during the same quarter of 2011, an increase of 10%. Third quarter 2012 production would have averaged nearly 14.0 Mmcfe/d but for the unexpected shut down of the Company's Zaniemysl well for nearly a month for unscheduled maintenance.
Production for the first nine months of 2012 was approximately 12.8 Mmcfe/d, compared to approximately 12.0 Mmcfe/d during the first nine months of 2011, an increase of 7%. Production at October 20, 2012, was approximately 13.7 Mmcfe/d.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: FX Energy - Operations Update October 22
Bought FXEN today shortly after market opened. IMO we saw a "knee-jerk reaction by the market to the KUTO 2 well being plugged. I agree w/Dan. I think the value is there, that it will continue to grow production, and that it's cash flow is adequate. IMO this was a "gift" by Mr. Market today. Owned this stock previously @$4 and sold it at $8. IMO that will happen again. You pays your money and you takes your chances.
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wilmawatts
- Posts: 685
- Joined: Fri Apr 01, 2011 10:12 am
Re: FX Energy - Operations Update October 22
Dan's new spreadsheet has the fair value over $9 based on existing discoveries and reserves only. I tend to agree with his valuation.
The hot money that expected the shares to be $100 with a Kutno hit are now running for the exit. If you are a long term investor (12 months or more) now is a good entry point
If you want to take the loss and move on I woud wait a few days for the rebound - the assets will make this one float towards $9 after the rush to the exits today on the Kutnos news
FXEN has a portfolio of good prospects, and decent assets in the bag already and producting
The hot money that expected the shares to be $100 with a Kutno hit are now running for the exit. If you are a long term investor (12 months or more) now is a good entry point
If you want to take the loss and move on I woud wait a few days for the rebound - the assets will make this one float towards $9 after the rush to the exits today on the Kutnos news
FXEN has a portfolio of good prospects, and decent assets in the bag already and producting