April 6, 2011 – FX Energy, Inc. (Nasdaq: FXEN) is rigging up to begin the re-entry of an existing wellbore in northern Montana. The purpose of the re-entry is to gather data from the wellbore to assist the Company in evaluating the hydrocarbon and CO2 potential in the Company’s northern Montana acreage. The well will be deepened from its current depth in the Cutbank formation of approximately 3,216 feet. Samples will be taken from the Lodgepole, Bakken, Nisku and Duperow formations at depths ranging from 4,400 to 5,500 feet. The well will be drilled by the Company’s wholly owned subsidiary, FX Drilling Company headquartered in Oilmont, Montana. “This is the first step in a thorough program aimed at evaluating the potential of the Bakken trend in our area of the Alberta Basin. We are in discussions with other companies with the hope of expanding our position in the trend,” said Andy Pierce VP of Operations for FX Energy. Following completion of the re-entry project the well will be plugged and abandoned. For strategic reasons, results of the test will remain confidential.
They do not have the capital at present to commit to the Bakken field at this time in a major way, so the well will be plugged. If the findings are positive, I believe they will either raise the capital needed to proceed or, more likely, engage a JV partner to make the necessary capital and equipment commitments.
Meanwhile, they are moving ahead aggressively in Poland where the prospects (at this time) seem more certain.