FX Energy drills Grundy well

FX Energy, Inc. announces initial operations on the Grundy well in the Company’s Fences concession area. Surface casing has been set to a depth of 302 meters. The well began drilling on February 1, 2008. The Grundy well is designed to test a possible Ca2 reef build-up identified on 2D seismic in an area approximately 20 miles east of the Company’s Sroda area. The Company considers the Grundy well to be high risk/high reward, especially compared to the Company’s usual Rotliegend sandstone targets. FX Energy owns a 49% non-operated interest in the Grundy well.

David Pierce, president and CEO, said that Grundy is a classic high risk exploration well designed to test a possible high potential Ca2/reef play in our Fences concession. The Polish Oil and Gas Company’s largest field discoveries in the last two decades have been Ca2/reef plays that produce both oil and gas. If we find carbonate rock, with or without hydrocarbons present, we might open the door to a new exploration play.

The Company indicated that initial drilling operations should be completed in the next several months. At that time, “electric log” and core analyses will be conducted to help determine preliminary results. If a drill stem test is conducted, this type of hydrocarbon test would require specialty tubulars which are currently on back order. Consequently, this type of test could not be conducted until the fourth quarter of this year.