FX Pleased with Lisewo Progress

FX Energy reports excellent gas shows during coring of the top level of Rotliegend sandstones in the Company's Lisewo well.

The gas shows were observed on the mudlogging unit during coring of the interval from 3810 to 3846 meters. The remaining schedule is to core and drill to a total depth of 3945 meters, run electric logs to estimate reservoir properties and the gas water contact, and then conduct a production test.

"The gas shows and cores are very encouraging. We have more drilling, coring, logging and testing to do before we can say this is a commercial gas deposit. So far, however, everything looks as good as we could have hoped," remarked Andy Pierce, the Company's Vice President of Operations.

At present, the Lisewo well has cored a total of 33 meters of porous Rotliegend sandstone.  The well will be drilled to 3945 meters, with additional cores and logs to help determine the full extent of the pay zone and other reservoir parameters. The nearest existing field is the Polish Oil and Gas Company's ("PGNiG") 390 Bcf Radlin field, about 12 kilometers west.

PGNiG is the operator of Lisewo and owns 51%; FX Energy owns 49% of the working interest.

The Lisewo Target

The Lisewo well is being drilled on a large 3-D defined structural trap located in the Company's "Fences" concession in west central Poland. If the Lisewo well is deemed commercial, and depending on log and production test data and geophysical analysis, the Lisewo structure could require additional wells for full development. In addition, drilling on two nearby satellite structures may be warranted.

Source: FX Energy