FX Energy, Inc. today reported that preliminary site work on the Plawce-2 well is scheduled to commence prior to year end. Plawce-2 will be the Company's first horizontal well in Poland. The planned work will include road construction and surface preparation with drilling expected to begin in early 2011. The well will be owned 51% and operated by the Polish Oil and Gas Company (POGC); FX Energy owns 49%.

In 1984 the Plawce-1 well was drilled by POGC to a depth of 3,970 meters and encountered a gas saturated column of over 100 meters in Rotliegend sandstones with tight gas reservoir qualities. The well tested gas but was never produced commercially. The Plawce-2 well will be located on the same horst as the Plawce-1. The horst continues to the north-west where Aurelian Oil & Gas PLC is currently drilling their Trzek-2 horizontal well.

The first phase of drilling Plawce-2 will be a vertical well to confirm the rock properties and the thickness of the gas column after which, depending upon the results of the vertical well, a horizontal leg will be drilled.

"Drilling the Plawce-2 well, beginning in early 2011, is an important step in the ramp up of our 2011 exploration program," said David Pierce, CEO of FX Energy. "This area has large reserve potential. Data from the Plawce-1 indicate the possibility of commercial production from a horizontal well without fraccing."

The Company also reported that the Lisewo-1 well is currently drilling at a depth of 300 meters. Plawce-2 and Lisewo-1 wells are being drilled under the same JOA where POGC is the operator and owns 51%; FX Energy owns 49%.

About FX Energy

FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration and production activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England. The Company trades on the NASDAQ Global Market under the symbol FXEN. Website: www.fxenergy.com.