POLAND A Unique Play on Conventional Drilling and the Strong European Gas Market August 2014 1
Market and Financial Overview Major Institutional Shareholders as of 3/31/2014 Financial Information as of 6/30/2014 Number of Shares % Holding Balance Sheet Unaudited Audited Income unaudited BlackRock Fund Advisors 3,595,229 6.4%…
FX Energy Focused on Poland Why Poland Poland still has conventional gas deposits (vertical wells, no stimulation) Gas prices currently are higher than U.S. and appear relatively stable (Europe = 9-12 vs. U.S. = 4-5) Solid track…
Untapped Resources in Poland Poland has significant undiscovered hydrocarbon potential Permian Basin extends across Europe: Permian (Rotliegend) gas fields in Poland are direct analogs to those found in the UK and Dutch sectors of the…
Polish Gas Prices Are Higher Than U.S. Europe imports 1/2 of its gas supply, mostly from Russia Poland imports 2/3 of its gas supply, mostly from Russia/Gazprom Domestic production: 420 Mmcf/day; 150 Bcf/year; 4.2 Bcm/year Natural…
Poland Overview Size: 312,000 sq. km. (120,000 sq. mi.); comparable to Germany or New Mexico Population: 38 million people; well- educated, multi-lingual, culturally homogeneous (Germany has 80 million; France and UK have 60…
FX Energy: Licenses in Poland Fences license: core producing area; many more prospects in inventory Edge - Tuchola Discovery Edge license: Tuchola discovery signals a Edge significant new gas play 100% Five license areas cover 2.3…
Fences License: Core Producing Area Rotliegend gas potential PGNiGs Paproc field 267 Bcf disc. 1982 Rotliegend gas fields from the 1980s showed area potential PGNiG had given up on the Rotliegend play - too deep for porosity below…
Fences License: Growth on a Solid Base Economics: Average of 10 Fences Wells (100%) Well cost (current estimate) 10 mm Long lived, steady production and revenues Facilities cost (current estimate) 4 mm High return on invested…
Fences License: Production/Reserves Growth Historical production and revenues in Fences license FX produced 12-13 Mmcfe/d (about 2,000 boe/d) net in each of the last 3 years FX had oil and gas net revenues of 30-35 million per year in…
Fences License: 2014/2015 Plans Substantial 3D seismic in hand; shift capex toward more drilling Fences License (FX 49%) 7 wells now producing Miloslaw-4 2014 or 2015 drill Lisewo-2 to start producing 3Q14 Zaniemysl sidetrack…
FX Inventory: 20 Undrilled Prospects Miloslaw Area Lisewo Area FX invested 40 million in 3D seismic 2011-2013 Long lead time to acquire, process, and interpret 3D seismic Payoff a backlog of drill-ready prospects on 3D with…
Edge License: Geological Setting Source, Reservoir, and Seal in the Edge License Carboniferous, Devonian and Silurian source rock underlie the Edge license most old wells had oil/gas shows Edge Devonian reefoidal buildups and…
Tuchola Field: A Model for Exploration Tuchola field: small size; high value Estimated 12 Bcf recoverable based on Tuchola-4 test: including methane, NGLs, condensate, and helium Methane plus helium plus condensate value approx. 7.00…
Edge License: Further Exploration Exploration: Larger prospects; additional trap types 240 sq. km. of new 3D currently being interpreted to identify prospects Four new prospects interpreted (Angowice prospects); remaining leads to be…
Edge License: Angowice Prospects Angowice-1 site selected FXs third well in the Edge license; Angowice-1 well location to test Angowice Main prospect, one of four in the cluster Seismic interpretation similar to Tuchola wells:…
Tuchola Field: Development Maximize cash flow; prepare for future discoveries Facilities and pipeline design underway; first production expected in 2017 Facilities and pipeline costs (mainly in 2016) estimated at 35 million Initial…
Recap Edge license: Tuchola discovery signals a potentially significant new exploration area Tuchola field (2 wells) estimated at 12 Bcf of recoverable gas Tuchola discovery provides a 3D model, a key exploration tool Current plans…
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