FX Energy, which is focused primarily on development and production of the Polish portion of the massive northwest European Permian's (which runs all the way over to the UK) gas and oil bearing Rotliegend sandstone fairway, reported good news today out of their gas-rich Ca1 (Basal Limestone) Zechstein formation-focused activities, as drilling on the latest well, the Tuchola-4K, has now begun.
Right on schedule after the recent rigging up announcement for the well at the start of the month (Feb 3), the Tuchola-4K site is located just over 2.6k feet west of the 5 MMcf per day tested Tuchola-3K discovery which was completed last year. Tuchola-3K even returned traces of condensate from a dolomite section in the Ca1 around 8.8k feet (Ca2, the Main Dolomite, which is the second carbonate horizon here, has also recently been proved to be oil and gas bearing in subtle stratigraphic plays), making this latest well, which targets the same Ca1 Zechstein formation, a natural evolution of the company's strategy for the area.
In addition, the Tuchola-4K, which is planned to plunge for a total of just over 11.3k feet during the next three months or so of projected drilling time (barring complications due to coring and testing, as well as the weather of course), will be striking at much lower objectives than before, with targets set as far down as the Upper Devonian. Actually the first of two wells slated for this year in the company's giant 730k gross and net acre Edge concession (100% interest acquired in four blocks total back in 2008), which is rife with Permian-age reefs and Devonian structures according to the extant 2D and 3D seismic data, the Tuchola-4K's drilling also heralds the start of a more comprehensive 3D seismic acquisition program for the area by FXEN.
Bolstered by their successes thus far and interested to get more guidance from analytical data, FXEN has now designed over 136 miles of 3D seismic work, with plans to identify yet more choice targets for future development in the Tuchola area of this sizeable concession. FXEN is also looking healthy enough to handle all of this with ease too, having existing working capital or credit lines that are more than sufficient to cover the capital budget for 2014, in which the two new wells and seismic program are included. Shareholders can rest assured that the company is clearly forging ahead here with their bottom line developing the Polish Permian.
President of FXEN, David Pierce, feels that with the extant (yet sparse) regional data and success of the Tuchola-3K, a good result off the Tuchola-4K tests (or the next well slated for this year), would broadly reinforce the company's emerging view that they have their hands on a very exciting play here. Confirmation of this view would substantially de-risk development of the area and investors should keep a close eye on the test data coming from the Tuchola-4K soon for some positive indicator that a major exploration effort could soon be underway in this concession.
To learn more, head on over to the FX Energy, Inc. site at FXENergy.com
MissionIR provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.missionir.com