FX Energy provides operations update
FX Energy issued an operations update on its activities in Poland. The Kutno-2 well has reached a depth of 6,576 meters, 126 meters deeper than the projected total depth when the well was originally started. The well has encountered reasonably good gas shows and temperatures favorable for hydrocarbon presence throughout the Rotliegend section. However, the porosities seen in the well cores are not as good as have been encountered in the company's successful Rotliegend wells at shallower depths in the Fences concession. The company currently plans to continue drilling and coring for an as yet undetermined number of meters, then run a drill stem test to gauge well bore gas entry rate and gas composition. The company's 100% owned Frankowo-1 well has reached the base of the Zechstein formation at a depth of 2,040 meters. The well has been logged and casing is currently being run prior to drilling into the Rotliegend target horizon. If Frankowo-1 is not successful in the Rotliegend, it will be plugged back to test the Main Dolomite. Drilling and service contractors for the Tuchola-1 well have been selected and location work is underway. The Tuchola-1 well is expected to begin drilling in November. The well is designed to test two independent target horizons: gas potential in the Ca2 Main Dolomite at a depth of approximately 2,550 meters, and oil potential in the Devonian from a depth of approximately 3,180 meters to 3,820 meters. Drill site preparation is underway at the Mieczewo-1K location with a spud date expected in Q4 of this year. Mechanical difficulties during the initial test of the Komorze-3 well required recompletion of the well. A production test will be carried out as soon as the recompletion work is finished. The Lisewo-1K was production tested in 2011 and is forecast to produce at an initial plateau rate of approximately 4.5M-5.0M cubic feet per day. Work is underway on a production facility that will serve both the Lisewo-1K and the Komorze-3 wells. Production is forecast to commence in the second half of 2013.
