FX Energy shares soar on strong well test results

Shares of FX Energy get a boost from positive well test results, plans to do more testing

Associated Press

NEW YORK (AP) -- FX Energy soared in Monday afternoon trading after the company reported that a test of a natural gas well in Poland indicated a flow rate of about 5 million cubic feet per day.

THE SPARK: CEO David Pierce said he is "cautiously optimistic" that the well can be run commercially. The Salt Lake City company is confident enough that it has decided to run a full production test over the next several days to determine whether to complete the well as a commercial discovery.

THE BIG PICTURE: The U.S. Energy Department announced two years ago that Poland may hold massive quantities of shale gas, the same energy source that has changed the energy landscape in the United States. Poland wants desperately to distance itself from Russia, which is the world's biggest natural gas exporter.

THE SHARES: FX Energy Inc. rose 15 percent, or 51 cents, to $3.95 in afternoon trading, after peaking at $4.09 earlier in the day. Over the past 52 weeks, the company's shares have traded between $2.48 and $8.78.

Since the beginning of this year, the shares have lost about 16 percent of their value.

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