Pritchard Equity Research Positive On FX Energy On Borrowing Base (FXEN)

Pritchard Equity Research rates shares of FX Energy, Inc. (NASDAQ: FXEN) a Buy with a $6 price target as the energy company eased liquidity concerns with a larger than expected borrowing base.

In the report Pritchard Equity notes, "The new borrowing base of $55 million gives the company breathing room to finance projected growth through 2011 and test additional Rotliegend targets. Funding and liquidity concerns. The company's $25 million bank line was close to being fully utilized. With its new $55 million credit facility (we had expected $50 million), there is a significant easing in liquidity needs. Funds, importantly, can be used for seismic, development and exploration."

Shares of FX Energy, Inc. are down 4 cents to $3.48 in Monday trading.