Supplement to Prospectus dated July 10, 2000, as amended August 14, 2000
FX ENERGY, INC.
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This supplement is a part of and should be read in
conjunction with our prospectus dated July 10, 2000, as amended
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August 14, 2000.
We have determined that our Kleka 11 well on the Kleka East structure
in the Fences project area is commercial. It is scheduled to commence production
in November 2000. Our operating partner Polish Oil and Gas Company, or POGC, has
agreed to allow its pipeline right-of-way and its Radlin field production
facility to be used for the Kleka 11 hookup, significantly reducing the time
required to connect to POGC's gas pipeline grid. The Kleka 11 well is located in
the Fences project area in western Poland, two kilometers southeast of POGC's
Kleka field. We hold a 49% interest and POGC holds 51%. A determination of the
best location for a second well to efficiently drain the Kleka East structure
will be made after several months of production from the Kleka 11 well.
We and POGC have also agreed to begin drilling the Mieszkow structure
in about two weeks and the Kleka North structure in about two months. The Kleka
North structure is approximately one kilometer north of POGC's producing Kleka
field. Kleka North and Mieszkow are on previously undrilled 3-D defined
structures.
We and POGC are also acquiring 3-D seismic on two other leads in the
Fences project area, Zaniemysl and Donatowo, in anticipation of drilling in the
first half of 2001.
Our Fences project area is being explored and developed under an
agreement with POGC. Terms of the agreement call for us to spend $16 million to
drill at least five wells and acquire 3-D seismic over leads already identified
by POGC. The 300,000 acre Fences project area in western Poland is in the region
where over 80% of POGC's natural gas reserves are located. In and near the
Fences project area in western Poland, POGC has discovered ten fields with
approximately 1.3 Tcf of reserves in the Rotliegendes trend and the Reef trend.
Our operations with POGC will apply the two models POGC developed and refined to
test several 3-D defined structures in the same Rotliegendes and Reef trends
within the Fences project area.
The Wilga 4 (sometimes referred to as the Wilga 255-4K) well was
plugged and abandoned as a dry hole. Although the drilling rig has been
released, further evaluations will continue to verify if sufficient reserves
have been developed by the Wilga 2 (sometimes referred to as the Wilga 255-2) to
warrant commercial development. The Wilga 2 tested at a combined rate of 16.9
million cubic feet of gas and 570 barrels of condensate per day from three
separate zones in the Carboniferous. An extended flow test of one zone in the
Wilga 2 is under consideration to verify commerciality for a development
project. In order to perform this test, a workover rig will be required to
perform the necessary procedures.
The Wilga 4 confirmed the presence of reservoir quality rock in an
easterly direction from the discovery location as well as providing new
information on structural dip of the Carboniferous intervals. Geologic mapping
will be revised to reflect this new data as well as evaluate independent
closures on trend with the original Wilga discovery.
The date of this prospectus supplement is August 31, 2000.
