On Dec. 1, FX Energy Inc. (NASDAQ: FXEN) detailed the reserve estimates, calculated by its independent reservoir engineering firm, for the Karmin and Tuchola gas fields in Poland.
The Karmin field, in the Fences license in western Poland, is estimated to contain proved reserves of gas with a net pre-tax present value of $26.2 million. This amount does not include facility costs, FX Energy added.
Proved plus probable reserves 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.
State-owned Polish Oil and Gas Co. operates Karmin with a 51% working interest, while FX Energy has a 49% working interest, the company noted.
FX Energy operates the Tuchola field in northwestern Poland's Edge license with a 100% working interest. It 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.
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/Mcf of high-methane gas.
"The impact of fields like Karmin and Tuchola are why we focus on exploration in Poland," said Andy Pierce, vice president of operations.
"The potential per-well reserves and the price of natural gas both are much higher than in the U.S.today. The Karmin well also illustrates the infrastructure advantage in the Fences license, where hookup costs are low," he continued.
"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," he added.
Regarding reserve volumes, Karmin is estimated to contain 7.6 Bcf of proved reserves of gas. Net proved plus probable reserves are estimated at 13.9 Bcf.
Karmin is scheduled to begin producing in 2016’s first quarter, at an initial rate of about 5 MMcf/d of gross gas, FX Energy said.
Tuchola is estimated to contain 5.7 Bcf of proved reserves of high-methane sales gas, excluding helium and nitrogen. Total production gas, including helium and nitrogen, is estimated at 10 Bcf. Proved plus probable reserves are estimated at 10 Bcf of sales gas, with total production gas of 18.4 Bcf.
Tuchola is expected to begin producing in 2017’s first quarter, at an initial rate of about 10 MMcf/day of produced gas, the company said.
FX Energy Corp. is based in Salt Lake City.
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