Poland: FX Energy Updates Production and Operations
FX Energy, Inc., the Poland focused oil and gas company, reported proved oil and gas reserves for its combined Poland and US domestic operations at year-end 2011 of 53.5 billion cubic feet equivalent (“Bcfe”), representing an increase from the 2010 year-end reserves of approximately 9.7 Bcfe or 22%.
The increase was due primarily to the Lisewo-1 discovery well that was completed in early 2011. The Company’s independent reservoir engineer assigned the Lisewo-1 well proved reserves of 25 Bcf. FX Energy owns a 49% interest in the Lisewo-1 well which is located in the Fences concession area.
Daily production from the Company’s wells in Poland has grown from an average of 10 Mmcfe a day in 2010 to 12 Mmcfe per day in 2011. So far in 2012 the production has increased to a daily rate of about 14 Mmcfe.
FX Energy said that work continues on the pipeline “bottleneck” south of the Kromolice 1, Kromolice 2 and Sroda wells which, when completed in the second quarter of this year, is expected to take production to approximately 15 Mmcfe a day. Another increase of roughly 2 Mmcfe per day is expected during the third quarter when production from the Winna Gora well is expected to come on line.
Speaking about the Company's interests in eight discoveries in the Fences area in Poland, David Pierce, FX Energy’s CEO, said “Clearly this is an area with enormous potential and we will be continuing our exploration efforts there this year with up to four additional wells planned for 2012.”
The Company also provided updates ro its current operations in Poland, as follows:
Fences Drilling
The first well in the Fences area this year will test a satellite structure near the Lisewo-1 discovery. The well is in the tender process. Drilling operations are expected to begin within the next 45 to 60 days.
Plawce-2 Frac
The Plawce-2 well was drilled in 2011 and encountered 480 meters of tight Rotliegend with no free water. The three stage vertical frac of the well covering three intervals in the upper Rotliegend is planned for early second quarter 2012.
Kutno
The Kutno well is currently drilling at a depth of approximately 3,756 meters (12,019 feet). This well is planned to test a massive Rotliegend structure at a depth of 21,000 feet. The well is projected to reach total depth mid year 2012. PGNiG will earn a 50% interest in the Kutno concession.
Source: FX Energy