FX Energy Outlines Strategy to Capitalize on Poland's Energy Sector

Strategic Insights -

FX Energy, Inc. (Nasdaq: FXEN), a Salt Lake City-based company, outlined its strategy to capitalize on its international play in Poland at the fourth annual Oil and Gas Conference hosted by EnerCom, Inc. and Kirkpatrick Energy Associates, Inc. The company has built an acreage position of 15.8 million acres, over 20 percent of the total land in Poland, through a five-year exploration program estimated to cost approximately $60 million.

Key Takeaways:

  • FX Energy has built an acreage position of 15.8 million acres in Poland, accounting for over 20 percent of the total land in the country.
  • The company has partnered with Apache Corporation (NYSE: APA) to undertake an exploration program, with Apache acting as operator and covering virtually all of the costs to earn an equal interest with FX.
  • FX Energy is now focusing its efforts on joining with the Polish Oil and Gas Company (POGC) to develop and enhance discoveries previously made by POGC.
  • Poland has a population of 40 million people and is experiencing strong annual economic growth with low inflation, creating a demand for energy that FX Energy aims to meet.
  • The company aims to convert from coal to natural gas to reduce pollution and meet entry qualification for the European Union.
  • FX Energy has been participating in drilling three wells in Poland and re-entering two and possibly three wells previously drilled by POGC, with plans to participate in drilling or re-entering at least 11 wells over the next 20 months.
  • The company is pursuing low-risk production enhancement/development projects to complement its ongoing long-term exploration program in Poland.

Statistics:

  • FX Energy has an acreage position of 15.8 million acres in Poland, representing over 20 percent of the total land in the country.
  • The exploration program targeting Poland's energy sector is estimated to cost approximately $60 million.
  • FX Energy is participating in drilling three wells in Poland and re-entering two and possibly three wells previously drilled by POGC.
  • Over the next 20 months, the company plans to participate in drilling or re-entering at least 11 wells in Poland.
  • Poland has a population of 40 million people and is experiencing strong annual economic growth with low inflation.

Sources:

  • FX Energy, Inc. (Nasdaq: FXEN)
  • EnerCom, Inc.
  • Kirkpatrick Energy Associates, Inc.
  • Apache Corporation (NYSE: APA)
  • Polish Oil and Gas Company (POGC)