FXEN today filed another 8-K updating positive progress in its exploration/development drilling operations and program in Poland, which included information that flow tests of Kleka 11 have resulted in the well being declared commercial, setting a November production commencement for the well, updating other drilling and data acquisition plans, and confirming that Wilga 255-4K has been plugged and abandoned as a dry hole.
The full text of the 8-K can be found at the Edgar copy sites. The FreeEdgar link is as follows:
freeedgar.com
The following is the body of the 8-K:
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ITEM 5. OTHER EVENTS
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On August 31, 2000, FX Energy, Inc. announced the Kleka 11 well is commercial
and is scheduled to commence production in November 2000. During meetings last
week, operating partner Polish Oil and Gas Company ("POGC") agreed to allow its
pipeline right-of-way and its Radlin field production facility to be used for
the Kleka 11 hookup, significantly reducing the time required to connect to
POGC's gas pipeline grid. The Kleka 11 well is located in the Fences Project
Area in western Poland, on the Kleka East structure, two kilometers southeast of
POGC's Kleka field. FX Energy holds 49% interest and POGC holds 51%. A
determination of the best location for a second well to efficiently drain the
Kleka East structure will be made after several months of production from the
Kleka 11 well.
FX Energy and POGC also agreed to begin drilling the Mieszkow structure in about
two weeks and the Kleka North structure in about two months. The Kleka North
structure is approximately one kilometer north of POGC's producing Kleka field.
Kleka North and Mieszkow are on previously undrilled 3-D defined structures.
FX Energy and POGC are also acquiring 3-D seismic on two other leads in the
Fences Project Area, Zaniemysl and Donatowo, in anticipation of drilling in the
first half of 2001.
FX Energy's Fences Project Area is being explored and developed under an
agreement with POGC. Terms of the agreement call for FX Energy to spend $16
million to drill at least five wells and acquire 3-D seismic over leads already
identified by POGC. The 300,000 acre Fences Project Area in western Poland is in
the region where over 80% of POGC's natural gas reserves are located. In and
near the Fences Project Area in western Poland, POGC has discovered ten fields
with approximately 1.3 Tcf of reserves in the Rotliegendes trend and the Reef
trend. FX Energy's operations with POGC will apply the two models POGC developed
and refined to test several 3-D defined structures in the same Rotliegendes and
Reef trends within the Fences Project Area.
FX Energy also announced that the Wilga 255-4K well was plugged and abandoned as
a dry hole. Although the drilling rig has been released, further evaluations
will continue to verify if sufficient reserves have been developed by the Wilga
255-2 to warrant commercial development. The Wilga 255-2 tested at a combined
rate of 16.9 million cubic feet of gas and 570 barrels of condensate per day
from three separate zones in the Carboniferous. An extended flow test of one
zone in the Wilga 255-2 is under consideration to verify commerciality for a
development project. In order to perform this test, a workover rig will be
required to perform the necessary procedures.
The Wilga 255-4K confirmed the presence of reservoir quality rock in an easterly
direction from the discovery location as well as providing new information on
structural dip of the Carboniferous intervals. Geologic mapping will be revised
to reflect this new data as well as evaluate independent closures on trend with
the original Wilga discovery.
FX Energy and its partners are exploring and evaluating five separate project
areas in Poland. Its shares are traded on Nasdaq National Market.
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It sounds like things are more workable in Poland than they are domestically here, since the word from the patch in Texas is that due to the high volume of current activity there's a three week wait to get contractors and crews for even the most minor maintenance work ... a good sign and a bad sign.
If anyone reads this, hope you have a great holiday weekend.
Steve |
