By OGJ editors
HOUSTON, May 19 -- FX Energy Inc., Salt Lake City, said construction began on facilities to place on production the 2004 Zaniemysl-3 gas discovery well in the Fences I project area in western Poland.
Flow is to start in the third quarter at a permitted rate of 10 MMcfd from reserves of 24 bcf in Permian Rotliegend. Polish Oil & Gas Co. operates 265,000-acre Fences I with 51% interest, and FX Energy generally holds 49%. CalEnergy Gas (Holdings) Ltd., London, which paid for the discovery well, earned a 24.5% interest in 45,000 acres surrounding Zaniemysl.
Meanwhile, construction is to start in early July on facilities to place the FX Energy-operated Wilga gas-condensate discovery well drilled in 2000 on production in the third quarter at 5-6 MMcfd and 230 b/d of condensate from reserves of 6.3 bcf and 254,000 bbl. Interests in the 250,000-acre Wilga area are FX Energy 82% interest and POGC 18%.
The companies plan to acquire 130 sq km of 3D seismic data over the Sroda area in the second half. They are starting 2D seismic acquisition in the Lubinia area and in the Fences II project area north of the Sroda 3D area.
A technical meeting is set for late June to consider either new drilling or 3D seismic acquisition in the pinchout area in Fences I as a 2006 operation.
FX Energy said it has incurred cumulative net losses of $68.5 million from its January 1989 inception through Dec. 31, 2005. It participated in drilling 21 exploratory wells in Poland, five successes and 16 dry holes. The Kleka-11 well has been producing gas from Rotliegend since 2001.
Availability of abundant gas from the former Soviet Union and the low cost of electricity from coal-fired generating plants may tend to depress gas prices in Poland, FX Energy said.
The company is dependent on selling gas to POGC at prices generally lower than prevailing in Western Europe. Demand is strong, and the market is open but has few participants.
