Updates Status of Sroda-6 Well and Credit Facility
SALT LAKE CITY, Sept. 25 /PRNewswire-FirstCall/ -- FX Energy, Inc.
(Nasdaq: FXEN) today reported that the drilling contractor for the Kromolice-2
well has been selected and the well is scheduled to spud in mid October.
NAFTA Pila, the same contractor that drilled the Company's recent commercial
discovery, Kromolice-1, will be the contractor for Kromolice-2. The new well
is located on a separate structure approximately one kilometer to the south of
Kromolice-1. The Kromolice-2 well is the third well to be drilled on recently
acquired 3-D seismic data in the Company's Fences Concession in Western
Poland. POGC owns 51% and operates the wells; FX Energy owns 49%.
Sroda-6 Well
The Sroda-6 well has reached the top of the Zechstein formation at
approximately 3235 meters. The well will now be logged and cased, after which
drilling will resume to the Rotliegend target formation, projected to be
encountered at approximately 3640 meters in about one month.
Credit Facility
The Company has previously announced that it has drawn $6 million under
its $25 million credit facility with the Royal Bank of Scotland, which was the
approximate amount of the capital cost of production facilities at the
Zaniemysl and Wilga wells. The credit facility was established in late 2006
based on production and reserves at that time. The Company anticipates an
increase in the available amount under the facility after year-end 2008, based
on adding the reserves of its previously successful wells. The Company
anticipates drawing an additional $5 million in the near term to finance its
share of Roszkow production facilities.
David Pierce, Chief Executive of the Company, said, 'It is gratifying to
have reached the point in our growth trajectory where debt is available and
appropriate to use in judicious amounts. Given the level of success we have
seen so far in the Sroda area, we hope to increase the pace of operations
there. We plan to use sensible amounts of debt based on our growing reserves
and revenue.'
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Correction
The news release dated September 8, 2008, incorrectly located the
Kromolice-1 well northeast of Sroda-4.
