BOSTON, March 13 /PRNewswire/ FX Energy, Inc. Chief Executive David Pierce, speaking at the CIBC World Markets Annual Energy Conference, expanded on the agreement with Rolls-Royce Power Ventures (�RRPV�) announced yesterday. FX Energy will receive $5 million in debt funding from RRPV to use in its Polish operations. In return, FX will gave RRPV a one-year option to sign a long-term contract to buy fixed quantities of gas from FX’s wells in Poland. �Our agreement gives RRPV the support they need to take an active role in Poland’s energy sector,� said Pierce. �In turn, FX forges an important link downstream, and gets a potential second market for gas, an economic interest in the downstream value of that gas, a big vote of confidence from a world-class power generator, and five million non-dilutive dollars which will take us to the point where we can use London-based bank financing.�
Mr. Pierce also discussed FX Energy’s latest discovery, the Tuchola well that is being completed in the Pomerania area of northwestern Poland. The discovery well, currently setting up for reservoir tests, will be completed in a dolomite reef section that appears to be part of a larger barrier reef system. �This appears to be the ‘home run’ that we have long expected in our 10-well exploration program, and as quickly as possible we’ll drill a confirmation well to prove it,� said Pierce. �Our shareholders need and deserve rapid confirmation of this important discovery.� FX and its partners are currently acquiring an additional several hundred kilometers of 2-D seismic along the trend to help quantify overall potential.
A third area covered in the presentation was FX Energy’s relationship with the Polish Oil and Gas Company (�POGC�) that has enabled FX to join in lower risk opportunities in Poland’s Permian Basin. FX announced last week the start of production from its first discovery well under the Fences agreement with POGC. �Our first producing well in Poland is a direct result of the relationship we have fostered with POGC since our arrival; our reef discovery in Pomerania is the statistically-expected result of our 10 well program with Apache,� said Pierce. �We have built durable relationships and implemented sensible exploration and development programs; we have now completed the cycle from concession to cash flow in Poland. We are about to begin harvesting.�
FX Energy and its partners are exploring and evaluating five separate project areas in Poland. Its shares are traded on Nasdaq National Market.
For a discussion of the contingencies and uncertainties to which information respecting future events is subject, see FX Energy’s 1999 annual report on Form 10-K and other SEC reports or visit the FX Energy’s website at www.fxenergy.com