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.
About the Author
Alan Petzet
Chief Editor Exploration
Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.
Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.
