SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): February 16, 1999
Commission File Number: 0-25386
FX ENERGY, INC.
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(Exact Name of Registrant as Specified in its Charter)
NEVADA 87-0504461
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
3006 HIGHLAND DRIVE
SUITE 206
SALT LAKE CITY, UTAH 84106
(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number, including Area Code:
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(801) 486-5555
N/A
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(Former name, former address, and formal fiscal year,
if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
FX Energy, Inc., announced on February 16, 1999, the results of the first two
wells of its initial ten well exploration program with Apache Corporation in
Poland. The Poniatowa 317-1 and the Czernic 277-2 were drilled and tested.
Although both wells had hydrocarbon shows in several zones, the wells will be
plugged due to non-commercial reservoir quality. FX Energy, Apache and the
Polish Oil and Gas Company ("POGC") were partners in the wells with Apache
acting as operator. Apache paid FX Energy's share of costs for both wells as
part of Apache's earning requirements, which include drilling ten wells at no
cost to FX Energy to earn a fifty percent interest in the Lublin and Carpathian
project areas in Poland. The next two wells, the third and fourth in the series
of ten, are scheduled to begin drilling during the second quarter. Apache also
has reaffirmed its commitment to begin drilling the fifth, sixth and seventh
wells yet this year.
On February 11, 1999, FX Energy and Apache signed a significant new agreement
pertaining to all of the interests of both companies in Poland which establishes
an Area of Mutual Interest ("AMI") covering all of Poland for a minimum of two
years. Within the AMI, each company has the right to join as a 50/50 partner in
any oil and gas exploration, production, development or property acquisition
activities of the other. The agreement also makes FX Energy and Apache equal
partners in a total of 14.9 million acres, including FX Energy's Pomeranian
project area and Apache's Warsaw West project area; only FX Energy's Baltic area
is excluded. Exploratory drilling in these project areas is expected to
commence during 2000 and 2001.
Management of FX Energy believes that with the newly signed AMI and the
FX/Apache initial exploration program firmly underway in Poland, FX Energy and
Apache are committed to Poland for the long term, and POGC, Apache and FX met
last week to discuss a new joint acquisition and development program in Poland.
POGC has a number of underdeveloped and shut-in oil and gas properties which
require additional capital for development. FX, Apache and POGC will meet in
Warsaw later this month to sign a development agreement for the Lachowice
concession, where POGC has three shut-in gas wells; the parties will reenter
these shut-in wells as soon as possible thereafter. FX and Apache view the
Lachowice project as the prototype for a series of such projects which FX,
Apache and POGC would like to initiate this year.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Dated: February 16, 1999 FX ENERGY, INC.
By: /s/Scott J. Duncan, Vice President
