FX Energy Reports 2011 Year-end Reserves; Updates Production and Operations
FX Energy, Inc. (NASDAQ: FXEN) reported proved oil and gas reserves for its combined Poland and domestic operations at year-end 2011 of 53.5 billion cubic feet equivalent ("Bcfe"). This represents an increase from the 2010 year-end reserves of approximately 9.7 Bcfe or 22%. The increase was due primarily to the Lisewo-1 discovery well that was completed in early 2011. The Company's independent reservoir engineer assigned the Lisewo-1 well proved reserves of 25 Bcf. FX Energy owns a 49% interest in the Lisewo-1 well which is located in the Fences concession area.
The Company's year-end 2011 proved plus probable (P50) reserves, which represent the most likely case, were 94.5 Bcfe, up 8% compared to 87.1 Bcfe at year-end 2010. At year end 2011 the pre-tax net present value (discounted at 10%) of the Company's proved P50 reserves was $289 million. This represents an increase of 18% from year-end 2010. In addition to the increase in reserves from the Lisewo-1 well, the value of the Company's reserves was also positively impacted by higher oil and gas prices. The weighted average prices used to determine year-end 2011 reserves were $6.19 per thousand cubic feet of gas (Mcf) and $84.61 per barrel of oil (Bbl), compared to $5.51 per Mcf and $68.12 per Bbl for 2010.
"The value of our P50 reserves at the end of 2011 represents $5.48 per share in value to the Company," said David Pierce, FX Energy's CEO. "Over 90% of this value comes from our interest in eight discoveries in our Fences area in Poland. Clearly this is an area with enormous potential and we will be continuing our exploration efforts there this year with up to four additional wells planned for 2012," said Pierce.
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