FX Energy Expresses Optimism for Polish Projects
FX Energy, Inc. today provided an update regarding ongoing exploration activity in Poland.
In a conference call to discuss Second Quarter operating results, CEO David Pierce expressed optimism with the extensive activity planned in Poland through the balance of the year and into 2012. The company and its partners have spent $30 million to date this year on drilling related activities in Poland.
KUTNO CONCESSION
Near term focus will fall on the Kutno-2 well, expected to spud on August 25th. The Kutno-2 well is planned to test a large (approximately 35,000 acres or 140 square kilometers) 2-D defined Rotliegend structure at a depth of approximately 6,500 meters (21,000 feet).
Pierce commented that he believed that Kutno represented a "game changer," as the highest potential prospect the company holds.
FX Energy is the operator and will be 50% owner of the Kutno concession;PGNiG will earn 50%
FENCES CONCESSION
Plawce-2 Tight Gas Well
The Plawce-2 tight gas well has reached total depth of 4,200 meters. Gas shows were encountered as expected in the Rotliegend sandstone. The well now will be logged and tested. Based on those results a decision will be made about completion options, including an unstimulated vertical completion, a vertical frac or an unstimulated horizontal leg.
Komorze-3 and Mieczewo
FX Energy said that it currently anticipates spudding two more wells yet this year in the Fences concession: Komorze-3 and Mieczewo.
Komorze-3 is planned to test a 3-D defined satellite structure approximately 4 kilometers north of the Lisewo-1 Rotliegend discovery made earlier this year. The Company anticipates drilling additional satellite structures near the Lisewo-1 discovery in 2012.
The Mieczewo well is planned to test a 3-D defined Rotliegend structure approximately 5 kilometers from the Kromolice production facility, which commenced operations mid-year.
Lisewo SE prospect
Field work on an approximately 270 square kilometer 3-D acquisition program is more than 50% complete. The 3-D seismic is focused on a large, 2-D defined Rotliegend structure, Lisewo SE, located on strike southeast of this year's Lisewo-1 discovery. The Company currently anticipates that the seismic will be available to remap the structure and select a drillsite about year end. Subject to the 3-D mapping, the Company anticipates drilling a well in the Lisewo SE structure in the first half of 2012.
PGNiG owns 51% and operates in the Fences concession; FX Energy owns 49%.
WARSAW SOUTH CONCESSION
Machnatka Well
The Machnatka well is the first of a planned four well program in 2011 and 2012 to test for oil and gas in Zechstein and Carboniferous horizons in the Company's 880,000 acre Warsaw South concession. Machnatka was drilled to a total depth of 4,500 meters, approximately 900 meters deeper than originally planned. The shallower Zechstein reef objective in the well was not as thick as expected. The Carboniferous sands were deeper than expected and lacked robust porosity development. However, the well did encounter gas shows (methane, ethane, propane) in Carboniferous sands and did encounter the K and I sand intervals in the Carboniferous, which are known productive in the eastern part of the concession. The Machnatka well was cored in the prospective horizons, logged and will be plugged and abandoned as a dry hole.
"We are encouraged by the presence of Carboniferous sands including the K and I sands that produced gas and oil in the Wilga well located in block 255 east of Machnatka. The fact that these two sands are present deeper in the Machnatka well, and had good background gas and decent gas shows, confirms that we are in the right neighborhood for hydrocarbon accumulation," said Andy Pierce, VP of Operations for FX Energy. "We are currently evaluating our seismic data to determine a possible updip location where better reservoir characteristics are expected."
Additional work in the Warsaw South concession is planned for the remainder of 2011 and 2012, including additional seismic acquisition and up to three more wells.
FX Energy owns 51% and operates in the Warsaw South concession; PGNiG owns 49%.
NORTHWEST CONCESSION
Plonsko prospect
Mapping is being completed on a large (approximately 20 square kilometers or 5,000 acres) Rotliegend target in the Company's Northwest Concession. The Company recently completed 2-D seismic acquisition and a drillsite is expected to be selected within the next few months. The Company plans to drill this prospect this year or next. FX Energy is the owner and operator of the 620,000 acre Northwest concession.
Source: FX Energy