FXEN shareholders might be interested in the following note from a shareholder and Chairman of the FXEN Ad Hoc shareholder committee issued today after the press release. Posted here just for informational purposes only.
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Thanks to everyone who has reached out to us and joined the Ad-Hoc committee. We have received a significant amount of support from shareholders in a very short period of time. This leads me to believe that there are many, many other shareholders who support our position in principal, if not in deed. If you have any contacts of yours who are significant shareholders of FX Energy but have not yet reached out to us, please recommend that they do.
Included in today's press release by the Company was an expansive explanation of management's viewpoint on the recent success at the Tuchola-3k and what this portends for the Edge concession. It is too early for us to stake an opinion on this new information except to say that we believe it validates our thesis that the Edge has enormous potential far dwarfing the current stock price of the Company.
We were very heartened to see management respond to our letter by quickly updating shareholders on the status of Plawce and the reason for the delay. Clearly this delay was due to ineptitude on the ground and not for any specific problem with the well itself. Like most of you, we are awaiting with baited breath the results of the well. If the well turns out to be a commercial success, this would be a significant development for FX Energy's shareholders as it would open up an entirely new frontier of prospecting in Poland that would be well-suited to larger E&P companies with the financial underpinnings to drill out the acreage and the intestinal fortitude to manage the inevitable Polish red tape.
Regardless of success or failure at Plawce, we view the company as both significantly undervalued (giving the current $3+ stock price) and highly mismanaged (for all the reasons as discussed in last week's letter, and then some!). For this reason, while we are heartened that management has offered a better view of the current status & thinking on Plawce & the Edge concession, there is still much work to be done.
In recent days we have begun reaching out to other E&P operators and strategic players that we feel could benefit from exposure to the Polish gas market. If there is a good fit with an existing operator that is interested in potentially acquiring FX Energy we want to encourage that prospect. Therefore we have formed a sub-committee of individuals with expertise in M&A to assist in the process. If you feel you would be of benefit to this process please reach out to me by email. Remember to add 'ACFX' to the subject line of all emails as it better facilitates ensuring that your communication gets to the right person.
Of course, our strong preference is for the Company to get its' own house in order. We have yet to hear from FX Energy's management and are disappointed that they have apparently not yet decided to engage us in constructive talks. We hope that is not case going forward and if anyone does interact with management in the coming days I urge you to strongly recommend they do so.
Zachary Prensky,
https://twitter.com/Zackfoot
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