Market Overview

FX Energy to Plug and Abandon Kutno-2 Well

FX Energy (NASDAQ: FXEN) reported today that after evaluating the data from the Kutno-2 well a decision to plug and abandon the well has been made. Plugging operations are underway.  Although gas shows and porosity of up to 6% were seen in the upper Rotliegend, the well flowed only salt water. The Rotliegend in the Kutno-2 well appears to be fluvial in origin, with abundant clays, dolomites and shales intermixed with sands.

David Pierce, Chief Executive Officer of the Company, said, "We knew from the outset that the big risks in this well were drilling risk, gas quality and reservoir quality. We overcame the first two risks, but not the third. We had hoped that Kutno might contain the classic dune sands that we continue to encounter in the Fences concession. That would have been a very big prize, but unfortunately the reservoir quality is too poor to make Kutno-2 commercial."

"While we are disappointed by the outcome of this well, it is a known and unavoidable risk of the exploration business. The key is to keep a balance between lower risk drilling and production development, such as in the

See full press release

Posted-In: Earnings News Guidance Global

 

Related Articles (FXEN)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters

Benzinga Professional