FX Energy, Inc., the independent oil and gas producer operating in the U.S. and Poland, reported 4Q FY 09 production figures today as well as data for all of 09 which clearly show a substantial increase in production.
Total production of oil and gas for 4Q 09 amounted to 1.08 billion cubic feet equivalent (Bcfe), a 180% increase over 4Q 08 production figures, and production for all of 09 combined was 2.26 Bcfe, 136% above the 1.67 Bcfe produced in 08.
The 4Q production spike is largely attributable to the Roszkow well in Poland coming online in late September 09. Having been completed in 07, this well tapped some 110 feet (34 meters) of net pay in a sandstone layer in the Rotliegend strata, with proved reserves of 51.5 Bcfe, 49% of which is owned by the Company.
CEO of FXEN David Pierce called the 4Q 09 production jump a “significant inflection point” for the Company, noting that production was now of a magnitude sufficient to make an “important contribution to capital spending”.
Pierce called the increase in production “dramatic” and was quick to point out that these new, higher production levels would be sustainable as wells in the Fences area, like the Roszkow well, which have shown multi-year production rates sustained at or near initial output.
Pierce called the Company’s current 11.5 million cubic feet equivalent per day (MMcfed) relatively sustainable, and pointed to three more wells in other Polish gas fields coming online near the end of this year as evidence that future production would outstrip current rates, offering even greater long-term profitability to investors.
Pierce cited production results and the Roszkow well as evidence of FXEN’s focus on the Polish Permian Basin, which – like the North American Permian Basin that has been so good to US producers (and the Western European Permian that has shown the same excellent results for North Sea producers) – is anticipated to have the same long-term, high-yield potential.
Pierce said the European Permian had the potential for multiple exploration targets and cited the Roszkow well and six other commercial discoveries in the Fences concession as ample cause for supreme confidence in the Company’s focus on the “Eastern European Permian”.
Let us hear your thoughts below: