Energy Prospectus

good, perhaps great results released today on new poland gas well. even after huge runup today, and for past two weeks, using their "stabilized" production forecasts (24mmcf/d for two newest gas wells vs. much larger IP rates--using delek's converter, new well IP'ed at 20K BOED), and at thermal parity, I've got them at 6,550 BOED total production, EV (mc - positive working capital + ltd) = $337.7M, and so EV/price to flowing barrel of oil at $51,000. for comparision, my yesterday's number for GST, using forecasted 2014 production from EPG, was $70k/FBO. (Bakken companies typically way over $100k...)

Jim: Be careful with FXEN. Management has a long history of "over-promising and under-delivering". It could be different this time, but I used to follow it for years and they never delivered. That said, the share price can make some big runs on news of test results like this.

I like what I see. But I have heard this song before by the same folks singing the current tune. Maybe this time things will turn out differently for shareholders.

The questions someone needs to ask FXEN are:
> How long before those big wells are connected to sales?
> Will a large processing facility have to be built and how long will it take to build and at what cost? < Probably the case
> Will the wells be able to produce at anything close to their test results.

I can tell you from personal experience (I once owned a working interest in a gas well that tested at over 3 MMcfpd and declined to zero after being on-line for three months), that test rates and production rates are vastly different.

That said, this may be the Big One for FXEN that makes everyone rich.