Exploration & Production | Top Story | Reserves
FX Details Reserve Estimates at Poland's Karmin, Tuchola Fields
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FX Energy, Inc. reported reserve estimates for the Karmin and Tuchola gas fields in Poland as calculated by its independent reservoir engineering firm. Net to the Company's 49% interest, the Karmin gas field is estimated to contain proved reserves of gas with a net pre-tax present value of $26.2 million after deducting facility costs estimated at $3.2 million. Proved plus probable reserves, net to the FX 49% interest, are estimated at a net pre-tax present value of $34.6 million after estimated facilities cost. The discounted present values are based on a 10% discount rate and a price of $7.33 per thousand cubic feet (Mcf) of low methane gas. The Karmin gas field is located in the Fences license in western Poland where the Polish Oil and Gas Company is the operator and owns 51% working interest; FX Energy owns 49% working interest.
The Company's 100% owned Tuchola gas field is estimated to contain proved reserves of gas, helium and condensate with a net pre-tax present value estimated at $12.7 million after facility costs estimated at $25 million. Proved plus probable reserves are estimated at $27.6 million pre-tax after estimated facilities cost. The discounted present values are based on a 10% discount rate and a price of $10.03 per mcf of high methane gas. The Tuchola gas field is located in the Edge license in northwestern Poland where the Company is the operator and owns 100% working interest.
Andy Pierce, Vice President of Operations, commented: "The impact of fields like Karmin and Tuchola are why we focus on exploration in Poland. The potential per-well reserves and the price of natural gas both are much higher than in the US today. The Karmin well also illustrates the infrastructure advantage in the Fences license, where hook-up costs are low. By contrast, infrastructure in the Edge license is relatively sparse, as the Tuchola field facility cost shows. However, as our exploration program in the Edge continues in 2015 we may be able to identify more reserves and potentially spread facilities costs over a larger base of reserves."
The Company cautioned that investors should not merely add these newly released figures to those at year-end last year. Production during 2014 and any revisions of previous reserve estimates should also be considered. These figures should be available shortly after year-end 2014.
Reserve Volumes
Net to the Company's 49% interest, the Karmin field is estimated to contain proved reserves of 7.6 billion cubic feet (Bcf) of gas; net proved plus probable reserves are estimated at 13.9 Bcf. The Karmin-1 well is expected to begin producing in the first quarter of 2016 at an initial rate of approximately 5.0 million cubic feet of gross gas per day (Mmcf/d), or approximately 2.5 Mmcf/d net to the Company's interest.
The Tuchola field is estimated to contain proved reserves of 5.7 Bcf of high methane sales gas, excluding helium and nitrogen. Total production gas, including helium and nitrogen, is estimated at 10.0 Bcf. Proved plus probable reserves are estimated at 10.0 Bcf of sales gas with total production gas of 18.4 Bcf. The Tuchola gas field is expected to begin producing in the second quarter of 2017 at an initial rate of approximately 10.0 Mmcf/day of produced gas.