FXEN POLAND DRILLING UPDATE
FXEN today has filed a 424B3 Prospectus Supplement and an 8-K Current Report with the SEC to record the following update report on its drilling activities in Poland:
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This cumulative supplement contains information that supplements and updates our
prospectus dated July 10, 2000, as amended by the cumulative amendment dated
November 20, 2000. Since it contains only the most recent developments, this
cumulative supplement should be read in conjunction with such amended
prospectus.
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We are providing the following operational update on our exploration
and development activities in Poland.
Fences Project Area
Kleka 11 Well and Pipeline
We have entered into a gas purchase contract with the Polish Oil and
Gas Company ("POGC"), under which POGC will purchase the gas produced from FX
Energy's Kleka 11 discovery well in western Poland. We own a 49% interest in the
well and POGC owns the remaining 51%. We are the first foreign company to sign a
gas purchase contract with POGC and will be the first western company to produce
and sell gas from a discovery in Poland.
The pipeline to connect the Kleka 11 well to POGC's Radlin production
facility has been completed. The underground line has been successfully pressure
tested and approval from the government to begin flowing gas through the line at
an initial rate of 4 million cubic feet per day is expected later this month.
Mieszkow 1 Well
The Mieszkow 1 well reached planned total depth structurally low to
prognosis. Geophysical velocity data from the well bore was integrated with
existing 3-D seismic data indicating that the projected structural apex is
approximately 400 meters to the northeast. The well is now being sidetracked and
directionally drilled to the new bottom hole location. The directional drilling
started from a vertical depth of 2,520 meters, approximately 500 meters above
the projected top of the structure.
The date of this cumulative prospectus supplement is February 16, 2001.
3-D Seismic Program
Processing of the two 3-D seismic surveys over the Zaniemysl and
Donatowo prospect areas is continuing. The new 3-D seismic in the Zaniemysl area
located in the Rotliegendes trend is expected to better define drilling targets
identified by 2-D seismic on trend with POGC's Kaleje field. Donatowo 3-D
seismic is expected to provide potential drillsite locations on reef build-ups
on trend with fields discovered by POGC containing approximately 800 Bcf of
reserves. Drillsite selections will be made as soon as processing of the 3-D
seismic is completed late in the second quarter.
Pomeranian Project Area
Tuchola 108-2 Well
The Tuchola 108-2 well is being completed in an approximately 200 foot
thick section of the Main Dolomite. The Tuchola 108-2 also encountered two
additional horizons, the Basal Limestone and Middle Devonian, that were
determined not to be commercial. The Tuchola discovery is the first confirmation
on the northern margin of the Permian Basin of a commercial accumulation in the
Main Dolomite Reef Trend that produces on the southern flank from POGC's BMB and
other fields.
A preliminary open-hole test of the Tuchola 108-2 flowed 9.5 million
cubic feet (MMcf) of natural gas per day, the limit of the surface equipment. It
was tested on a 26/64-inch choke with a flowing tubing pressure of 2,380 pounds
per square inch. The Tuchola 108-2 is approximately 60 miles from the nearest
production. A gas pipeline is located within about three miles from the
discovery.
Chojnice 108-6 Well
The Tuchola 108-2 rig will move onto the Chojnice 108-6 drillsite to
test the next prospect in the Main Dolomite Reef Trend. The well is planned to
test a Main Dolomite buildup at a depth of approximately 2,700 meters and is
located approximately three kilometers northwest of the Tuchola 108-2 discovery.
Main Dolomite Reef Trend Seismic Acquisition Program
A 2-D seismic acquisition program is planned along the Main Dolomite
Reef Trend in the Pomeranian Project Area. The approximately 250-kilometer
program is expected to provide drill-ready prospects that have been identified
as leads on regional seismic data. The seismic is also planned to identify and
evaluate several other potential leads that lie along a trend that extends for
over 60 kilometers in the Pomeranian concession.
Warsaw West Project Area
Annopol 254-1
The Annopol 254-1 was drilled to a depth of 3,671 meters and will be
plugged and abandoned as a dry hole. Our cost of the well was carried by Apache
Corporation.
Lublin Project Area
Wilga 255-2
An extended flow test is planned for the first half of this year on the
Wilga 255-2 to assess the potential for commercial production in light of
pipeline and facility expenditures that would be required. Apache will pay our
costs to test and complete the Wilga 255-2.
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The filings are available at the various Edgar copy sites. The link to the 424B3 at FreeEdgar is:
freeedgar.com
The link to the 8-K at FreeEdgar is:
freeedgar.com
Steve |
