FX Energy, Inc. energized on strong productivity
Shares of independent oil and gas exploration and production company FX Energy, Inc. (Nasdaq: FXEN) are energized today following an update on the company’s productivity of its oil and gas operations for the first half of 2007.
FX Energy's production from new wells in Poland for the second quarter of 2007 was 593 million cubic feet equivalent (Mmcfe), an average of 6.5 Mmcfe per day. This is nearly triple the production rate the company experienced in the second quarter of 2006.
Production for the first half of 2007 was 1,193 Mmcfe, more than triple the amount for the first half of 2006 and also a record for FX.
The company reported that its production records also led to record revenues for the second quarter and first half of $4.5 and $8.7 million, respectively.
FX has a small presence in the U.S.; while, most of the company’s projects are located in Poland. The company holds a 100% interest in Poland of over 3.1 million acres, and partners with the Polish Oil and Gas Company in an additional 1.1 million acres.
According to FX, 75% of the company's production during the first half came from its operations in Poland. The driving force behind these production increases has been two new wells in Poland. FX Energy holds 24.5% and 82% working interest, respectively, in the Zaniemysl and Wilga wells, which started producing in the fourth quarter of 2006.
Through 2006, most of the company's production was in the United States, primarily in Montana. Since then, FX’s exploration activity has focused on Poland and production commenced from two successful exploration wells in late 2006. The company said it has focused on Poland because it has provided attractive conventional oil and gas exploration and production opportunities.
Shares of FX are up 11.54%, or $0.72 to $6.96 in late day trading.
