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Poland: FX seeing tight gas production increases

FX Energy Inc., Salt Lake City, said its gas production in Poland has averaged 13.5 MMscfd so far in 2012, up from the 2011 average of 12 MMscfd.

Despite a $28.5 million net loss for calendar 2011, FX said its KSK wells and facilities in Poland have not yet reached their maximum sustainable production rates. A further production rate is expected in a few months, followed by another uptick when the Winna Gora well goes on line. The wells produce from tight Rotliegend sandstones in Poland's Permian basin.

The company received an average $6.19/Mcf for gas in Poland in 2011, up 15% from 2010, but a decrease in US dollar-dominated Polish gas prices in the fourth quarter partly offset the production increase.

Capital spending for 2012 is expected to increase substantially over the $32.5 million spent in 2011 and are to be funded by higher revenue and cash balances.


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