Exploration & Production | Top Story
FX Estimates Polish Tuchola Prospect Holds 20 Bcf Gas-in-Place
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FX Energy, Inc. has reported its internal estimate of gas volumes for the Tuchola field.
The field is located in the Edge license in north central Poland, where the Company holds 100% working interest in 730,000 acres (2,937 square kilometers). The dynamic flow test data indicate 20 billion cubic feet (Bcf) of gas in place, although a pressure buildup at the end of the test could indicate a somewhat higher figure. This compares to a volumetric mid-point estimate of 19.5 Bcf of gas in place. The Company estimates recoverable gas at approximately 60% to 65% of actual gas in place. The Company also estimates field production of approximately 9 barrels per day of condensate.
The Company noted that it expects to realize approximately the same price per thousand cubic feet (Mcf) of gross gas produced from the Tuchola field as it does from its Fences fields ($7.42/Mcf wellhead average for 1Q2014), based on current prices for natural gas, condensate, liquefied natural gas and helium. In addition, because the two Tuchola wells together are capable of producing at a rate of 24 million cubic feet per day, the higher ratio of production to reserves in the Tuchola field could yield an appreciably higher present value per Mcf than would a comparable reserve in the Fences license. The Company is proceeding with design and permit work to get the Tuchola field into production at the earliest possible date, which could be as early as year-end 2016. In addition, Company officials are in active discussions with several potential gas buyers regarding future gas sales along with related options to fund development costs.
David Pierce, CEO of FX Energy, commented: "The Edge license continues to reward us. We are seeing the essential elements come together for a potentially significant exploration play. Although we are keenly aware of the high risks, we also see the potential scale of this opportunity. This is the reason we came to Poland in the first place. We are moving forward with design and permit work for production facilities and it looks like the forecast cash flow from the Tuchola field will easily repay those costs. We are also moving forward on the exploration front, and hope to have locations for this year's next two wells selected within a few weeks. The pieces are continuing to fall in place."