SALT LAKE CITY, Dec. 1, 2014 /PRNewswire/ -- FX Energy,
Inc. (NASDAQ: FXEN) today announced reserve estimates for the
Karmin and Tuchola gas fields in Poland as calculated by its independent
reservoir engineering firm. Net to the Company's 49%
interest, the Karmin gas field is estimated to contain proved
reserves of gas with a net pre-tax present value of $26.2 million after deducting facility costs
estimated at $3.2 million.
Proved plus probable reserves, net to the FX 49% interest, are
estimated at a net pre-tax present value of $34.6 million after estimated facilities
cost. The discounted present values are based on a 10%
discount rate and a price of $7.33
per thousand cubic feet (Mcf) of low methane gas. The Karmin
gas field is located in the Fences license in western Poland where the Polish Oil and Gas Company is
the operator and owns 51% working interest; FX Energy owns 49%
working interest.
The Company's 100% owned Tuchola gas field is estimated to
contain proved reserves of gas, helium and condensate with a net
pre-tax present value estimated at $12.7
million after facility costs estimated at $25 million. Proved plus probable reserves
are estimated at $27.6 million
pre-tax after estimated facilities cost. The discounted
present values are based on a 10% discount rate and a price of
$10.03 per mcf of high methane
gas. The Tuchola gas field is located in the Edge license in
northwestern Poland where the
Company is the operator and owns 100% working interest.
"The impact of fields like Karmin and Tuchola are why we focus
on exploration in Poland,"
remarked Andy Pierce, Vice President
of Operations. "The potential per-well reserves and the price
of natural gas both are much higher than in the US today. The
Karmin well also illustrates the infrastructure advantage in the
Fences license, where hook-up costs are low. By contrast,
infrastructure in the Edge license is relatively sparse, as the
Tuchola field facility cost shows. However, as our
exploration program in the Edge continues in 2015 we may be able to
identify more reserves and potentially spread facilities costs over
a larger base of reserves."
The Company cautioned that investors should not merely add these
newly released figures to those at year-end last year. Production
during 2014 and any revisions of previous reserve estimates should
also be considered. These figures should be available shortly after
year-end 2014.
Reserve Volumes
Net to the Company's 49% interest, the Karmin field is estimated
to contain proved reserves of 7.6 billion cubic feet (Bcf) of gas;
net proved plus probable reserves are estimated at 13.9 Bcf.
The Karmin-1 well is expected to begin producing in the first
quarter of 2016 at an initial rate of approximately 5.0 million
cubic feet of gross gas per day (Mmcf/d), or approximately 2.5
Mmcf/d net to the Company's interest.
The Tuchola field is estimated to contain proved reserves of 5.7
Bcf of high methane sales gas, excluding helium and nitrogen.
Total production gas, including helium and nitrogen, is estimated
at 10.0 Bcf. Proved plus probable reserves are estimated at
10.0 Bcf of sales gas with total production gas of 18.4 Bcf.
The Tuchola gas field is expected to begin producing in the
second quarter of 2017 at an initial rate of approximately 10.0
Mmcf/day of produced gas.
About FX Energy
FX Energy is an independent oil and gas exploration and
production company with production in the U.S. and Poland.
The Company's main exploration and production activity is focused
on Poland's Permian Basin where
the gas-bearing Rotliegend sandstone is a direct analog to the
Southern Gas Basin offshore England. The Company trades on
the NASDAQ Global Select Market under the symbol FXEN.
Website www.fxenergy.com.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements.
Forward-looking statements are not guarantees. For example,
exploration, drilling, development, construction, or other projects
or operations may be subject to the successful completion of
technical work; environmental, governmental or partner approvals;
equipment availability; or other things that are or may be beyond
the control of the Company. Operations that are anticipated,
planned, or scheduled may be changed, delayed, take longer than
expected, fail to accomplish intended results, or not take place at
all.
In carrying out exploration, it is necessary to identify and
evaluate risks and potential rewards. This identification and
evaluation is informed by science but remains inherently
uncertain. Subsurface features that appear to be possible
traps may not exist at all, may be smaller than interpreted, may
not contain hydrocarbons, may not contain the quantity or quality
estimated, or may have reservoir conditions that do not allow
adequate recovery to render a discovery commercial or
profitable. Forward-looking statements about the size,
potential, or likelihood of discovery respecting exploration
targets are certainly not guarantees of discovery, the actual
presence or recoverability of hydrocarbons, or the ability to
produce in commercial or profitable quantities. Estimates of
potential typically do not take into account all the risks of
drilling and completion nor do they take into account the fact that
hydrocarbon volumes are never 100% recoverable. Such
estimates are part of the complex process of trying to measure and
evaluate risk and reward in an uncertain industry.
Forward-looking statements are subject to risks and
uncertainties outside FX Energy's control. Actual events or
results may differ materially from the forward-looking
statements. For a discussion of additional contingencies and
uncertainties to which information respecting future events is
subject, see FX Energy's SEC reports or visit FX Energy's website
at www.fxenergy.com.
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SOURCE FX Energy, Inc.