FOR IMMEDIATE RELEASE | SCOTT J. DUNCAN |
| FX Energy, Inc. |
July 29, 2008 | 3006 Highland Drive, Suite 206 |
| Salt Lake City, Utah 84106 |
| (801) 486-5555 Fax (801) 486-5575 |
| www.fxenergy.com |
FX Energy’s Kromolice-1 Well Flows Gas
Salt Lake City, July 29, 2008 – FX Energy, Inc. (NASDAQ: FXEN) today reported a successful drill stem test (DST) of the Company’s Kromolice-1 well. Located in west central Poland, this exploratory well flowed gas with no water in this first DST. The nearest existing gas discovery is the Company’s Sroda-4 well some 5 kilometers to the southeast.
Andy Pierce, Vice President of Operations, remarked, “We are encouraged with this initial DST, but keep in mind we’ve only drilled a few meters into the pay zone so far. We have more drilling, coring and testing to do before we can say for sure whether this is a producible gas deposit. But so far everything looks just like we expected.”
The Kromolice North Target
At the time of the DST the Kromolice-1 well had cored a total of 4.5 meters of porous Rotliegend sandstone. The well will be drilled another 50 meters or so, with additional cores and logs to determine the full extent of the pay zone and other reservoir parameters. The Polish Oil and Gas Company is the operator and owns 51%; FX Energy owns 49% of the working interest.
The Kromolice-1 well is being drilled on the Kromolice North prospect, a structural trap located in the Company’s “Fences” concession. During the previous four years the Company has drilled five other structural traps in the Fences concession. Four of the five wells achieved commercial rates of production. Kromolice and the five previous wells were drilled on separate structural traps. Kromolice-1 is the first well to be drilled on the Company’s new 3-D seismic acquired in 2007.
Other Fences Wells
The Company is currently drilling a seventh structural trap well, Sroda-6, and plans an eighth well to test the Kromolice South structural trap later this year. Both of these wells are located within approximately 5 kilometers of the Kromolice-1 well. In addition, the Company is drilling a deep test, Grundy-1, on the east side of the Fences concession. The Grundy well is a high risk test of both the Main Dolomite and the Rotliegend much deeper in the basin.
David Pierce, president of FX Energy noted, “We are very pleased to be on track with this year’s planned operations. The fact that we have three wells drilling at the same time is very satisfying. We are building momentum in our core area and we hope that the results from Kromolice-1 will provide even more encouragement.”
About FX Energy
FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company’s main exploration 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 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.
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.
Forward-looking statements are subject to risks and uncertainties outside FX Energy’s control. Actual events or results may differ materially from the forward-looking statements. For a discussion of additional contingencies and uncertainties to which information respecting future events is subject, see FX Energy’s SEC reports or visit FX Energy’s website at www.fxenergy.com
