FX Energy Reports 2012 Year-end Reserves; Updates Production
SALT LAKE CITY, March 14, 2013
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 (In million cubic
December 31, 2012:
Beginning of year 639 -- -- 49,636
Extensions or discoveries^(1) -- -- -- 2,313
Revisions of previous 9 -- -- (3,371)
Production (54) -- -- (4,457)
End of year 594 -- -- 44,121
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.
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.
Contact: Scott J. Duncan, FX Energy, Inc., +1-801-486-5555, fax,
Press spacebar to pause and continue. Press esc to stop.