SALT LAKE CITY, March 14, 2013 /PRNewswire/ -- FX Energy,
Inc. (NASDAQ: FXEN) today reported proved oil and gas
reserves for its combined Poland
and domestic operations at year-end 2012 of 47.7 billion cubic feet
equivalent ("Bcfe"). This represents a decrease of approximately
5.7 Bcfe or 11% from 2011 year-end reserves of 53.4 Bcfe. The
decrease was due primarily to production during the year of 4.8
Bcfe and negative revisions of 3.3 Bcfe, offset in part by reserve
additions of 2.3 Bcfe from the Komorze-3K discovery
well. FX Energy owns a 49% interest in the
Komorze-3K well, which is located in the Fences concession
area.
The Company's year-end 2012 proved plus probable (P50)
reserves, which represent the most likely case, were 79.4 Bcfe,
down 16% compared to 94.5 Bcfe at year-end 2011. At year end 2012
the pre-tax net present value (discounted at 10%) of the Company's
proved P50 reserves was $243 million.
This also represents a decrease of 16% from year-end
2011.
Oil and gas prices had a mixed impact on the value of the
Company's reserves. The weighted average prices used to determine
year-end 2012 reserves were $6.60 per
thousand cubic feet of gas (Mcf) and $78.14 per barrel of oil (Bbl), compared to
$6.19 per Mcf and $84.61 per Bbl for 2011.
"The estimated pre-tax discounted present value of our P50
reserves at the end of 2012 was $4.56
per share compared to last year's $5.67," said David
Pierce, FX Energy's CEO. "We are disappointed that this
year's number is lower than last year's. We believe our increased
drilling program and budget for 2013 and 2014, particularly in the
Fences concession, should result in new discoveries to reestablish
our long term track record of reserve growth."
The following table represents the Company's estimate of
proved reserve quantities as of year- end 2012:
|
Crude
Oil
|
|
Natural
Gas
|
|
United
States
|
|
Poland
|
|
United
States
|
|
Poland
|
|
(In thousand barrels of
oil)
|
|
(In million cubic
feet)
|
|
|
|
|
|
|
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
Beginning of year
|
639
|
|
--
|
|
--
|
|
49,636
|
Extensions or discoveries(1)
|
--
|
|
--
|
|
--
|
|
2,313
|
Revisions of previous
estimates(2)
|
9
|
|
--
|
|
--
|
|
(3,371)
|
Production
|
(54)
|
|
--
|
|
--
|
|
(4,457)
|
End of year
|
594
|
|
--
|
|
--
|
|
44,121
|
Production Update
The Company's daily production has grown from an average
of 12.0 Mmcfe a day in 2011 to 13.2 Mmcfe per day in 2012. So far
in 2013 the average daily production rate is 14.0 Mmcfe.
Construction is underway to bring two more wells
on line later this year. The production increase from these two
wells, Lisewo-1 and Komorze-3K, is expected to more than offset
natural production declines elsewhere. As a result, the Company
anticipates 2013 year-end results will show another year on year
increase in average daily production.
About FX Energy
FX Energy is an independent oil and gas exploration and
production company with production in the US 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. Actual production over time may be more or less than estimates
of reserves, including proved and P50 or other reserve
measures.
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
with respect to exploration targets are certainly not guarantees of
discovery or of the actual presence or recoverability of
hydrocarbons, or of 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.
SOURCE FX Energy, Inc.