POLANDA Unique Play on the Strong European Gas Market                  March 2013                      1
FX Energy Corporate Information       •     NASDAQ Symbol:                                 FXEN                           ...
Corporate Overview Major Institutional Shareholders as of 12/31/2012                                Financial Information ...
Oil & Gas Concessions in Poland FX is producing and exploring for  conventional fields with high value     • One of only ...
FX Energy Today Significant assets      •   2.7 million gross (2.0 mm net) acres (over 8,000 net km2) in Poland – 14 lice...
WHY POLAND?   Sound economy; rule of law   Untapped conventional resources   Strong gas market   Attractive economics     ...
Poland: Stable & Growing in the EU Size: 312,000 sq. km (120,000 sq. mi.);  comparable to Germany - or New Mexico Popula...
Untapped Resources in Poland Poland has significant hydrocarbon  potential                                               ...
Gas Supply is Tight     Europe imports 1/2 of its gas supply from Russia     Poland imports 2/3 of its gas supply from R...
Gas Prices Are High and Holding  Natural gas in Europe is near $12 per Mcf ($448/Mcm)            •          European gas ...
Attractive Production Economics       Lower costs in Poland than in US                                                   ...
Corporate Structure; Poland in-Country Team                         Executive Directors                                   ...
PRODUCTION and              DEVELOPMENT                                         ---         The Fences Concession    2013 ...
Reserves Growth Track Record            P-50 Reserves - PV-10 (pre-tax millions)                    P-50 Reserves vs. Prod...
Production Growth             Strong production growth from wells already drilled and tested                    • 2011: 1...
Long Lived Wells                       Average Fences Well - Production Profile                                           ...
Fences Concession – FX Core Area                                     PGNiG’s Paproc field                                 ...
Results to Date in Fences Concession             Commercial Discoveries                    Gross P50 Reserves(1) /wellKlek...
2013 Operations Plan                                                 Plawce-2                                             ...
Lisewo Area Potential Lisewo area 3-D  • Lisewo-1 and Komorze-3    discoveries: aggregate 50 Bcf (1.3    Bcm) P50 gross; ...
HIGH POTENTIAL              EXPLORATION                                         ---               Outside the Fences      ...
FX Concession Strategy Fences Concession  • Located on Rotliegend basin edge    in the path of gas migration  • Existing ...
FX Energy Exploration Concessions Optionality: High Impact Exploration     •   High potential identified in large explora...
Edge Concession – Tuchola-3K Well                                                            Ca2 2600m               Apach...
Block 229                                           Block 229                        Lead-1                               ...
Block 246                                                Block 246       Bronsko field                            concessi...
Warsaw South ConcessionsWarsaw South                                              Warsaw Southconcessions                 ...
Upside Potential in 5 Project Areas              FX 2012 year end reserves               • 79 Bcfe (2.1 Bcme) of 2P(P50) ...
NAV and Forward Drilling Program  Net Asset Value (NAV) Analysis  ($ in millions, except per share amounts)               ...
Zaniemysl Production Facility                  Grabowka JV                    Roszkow Production              Zaniemysl-3 ...
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Fx mar13 presentation

  1. 1. POLANDA Unique Play on the Strong European Gas Market March 2013 1
  2. 2. FX Energy Corporate Information • NASDAQ Symbol: FXEN Corporate Headquarters • Market Cap: $210 million @ $4.00/sh FX Energy, Inc. 3006 Highland Drive • 50 day avg. volume 280,000 shares/day Salt Lake City, UT 84106 • 52 week price range $3.32 - $8.77 Ph: (801) 486-5555 • Institutional ownership 42% website: www.fxenergy.com • Officer/director ownership 5.5% (7.6% fully diluted) Contact Scott Duncan • Shares outstanding 53.2 million VP Investor Relations • Fully diluted 54.5 million scottduncan@fxenergy.comFORWARD LOOKING STATEMENTSThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to potential and probablereserves, cash flow, value, risked value, timing of drilling and exploration activities and revenue projections. These statements relate to future events or to future financial performanceand involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from anyfuture results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-lookingstatements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that might materially affect actual results, levelsof activity, performance or achievements.For example, exploration, drilling, development, construction or other projects or operations may be subject to the successful completion of technical work; environmental, governmentalor partner approvals; equipment availability, or other things that are or may be beyond the control of the Company. The Company’s exploration or development operations that areanticipated, planned or scheduled may be changed, delayed, take longer than expected, fail to accomplish intended results, or not take place at all. In carrying out exploration it isnecessary to identify and evaluate risks and potential rewards. This identification and evaluation is informed by science but remains inherently uncertain. Subsurface features that appear tobe possible traps may not exist at all, may be smaller than interpreted, may not contain hydrocarbons, may not contain the quantity or quality estimated, or may have reservoir conditionsthat do not allow adequate recovery to render a discovery commercial or profitable. Forward looking statements about the size, potential or likelihood of discovery with respect toexploration targets are certainly not guarantees of discovery or of the actual presence or recoverability of hydrocarbons, or of the ability to produce in commercial or profitable quantities.Estimates of potential typically do not take into account all the risks of drilling and completion nor do they take into account the fact that hydrocarbon volumes are never 100%recoverable. Such estimates are part of the complex process of trying to measure and evaluate risk and reward in an uncertain industry.Other factors that could materially affect actual results, levels of activity, performance or achievement can be found in the Company’s Annual Report on Form 10-K filed on March 14,2013 and in the documents incorporated therein by reference. If any of these risks and uncertainties develop, or if any of our underlying assumptions prove to be incorrect, out actualresults, levels of activity, performance or achievement may vary significantly from what we projected. Any forward looking statement contained in or made during this presentationreflects the Company’s current views with respect to such future events and is subject to these and other risks, uncertainties and assumptions. We assume no obligation to publicly updateor revise these forward-looking statements for any reason, whether as a result of new information, future events or developments or otherwise.NASDAQ: FXEN Prepared: March 14, 2013; Printed: March 14, 2013 2
  3. 3. Corporate Overview Major Institutional Shareholders as of 12/31/2012 Financial Information as of 12/31/2012 Number of Shares % HoldingBlackRock Fund Advisors 2,881,369 5.3% Balance Sheet Audited Audited Income AuditedVanguard Group, Inc. 2,866,230 5.3% Data ($mm) 12/31/12 12/31/11 Statement DataErste Asset Management 1,360,785 2.5% ($mm) Audited 2012 2011 Current assets $47.1 $60.2Clear Harbor Asset Management LLC 1,229,282 2.3% Total revenues $36.6 $35.4Jennison Associates LLC 1,219,246 2.2% Property, net 57.1 47.9Odey Asset Management LLP 1,100,998 2.0%BMO Asset Management Corp. 972,196 1.8% Other assets 1.8 2.1SSgA Funds Management 915,568 1.7% Operating Costs 5.2 8.3Wellington Shields & Co. 846,747 1.6% Total assets $106.0 $110.2Northern Trust Investments 783,042 1.4% Exploration Costs 23.8 16.6ING Investments Management 665,590 1.2% Current liabilities $16.7 $10.4 Non-cash expenses 9.2 5.2BZ WBK Asset Management 604,572 1.1%BlackRock Advisors 506,449 0.9% G&A 8.4 8.4 Long term debt 33.0 40.0Tom Lovejoy 951,216 1.7%David Pierce 687,304 1.3% Other long term 1.4 1.2 Total Costs 46.6 38.5 Ordinary Shares Outstanding 53,246,620 Options 1,275,299 Shldrs Equity 54.9 58.6 Fully Diluted Shares 54,521,919 Operating inc. (loss) $(10.0) $(3.1) Total $106.0 $110.2 Shareholder Split – Shares Outstanding Ownership by Shareholder Category 2013 Liquidity Sources (millions) (fully diluted) 7.6% $15 Retail Cash Institutional 50.5% Cash Flow $40 Officer and Director 41.9% Bank Facility $25 Cash flow is after G&A but before exploration and developmentNASDAQ: FXEN 3
  4. 4. Oil & Gas Concessions in Poland FX is producing and exploring for conventional fields with high value • One of only two producers in Poland Tornquist Line • Balanced portfolio of low and high risk prospects • Gas production benefits from favorable european prices Shale gas only FX has “first mover” advantage in conventional exploration in Poland Fences Concession • Built an interactive database of nearly PGNiG; FX Energy Poland 2000 wells along with 2D/3D seismic Conventional gas New players in Poland over the last few years came to investigate unconventional shale gas potential – lack of commercial results have prompted some to leave NASDAQ: FXEN 4
  5. 5. FX Energy Today Significant assets • 2.7 million gross (2.0 mm net) acres (over 8,000 net km2) in Poland – 14 licenses • $243 million NAV at 12/31/12 (P50 pre-tax reserves(1)); $4.56/share NAV before prospect and acreage value High European gas prices • $8.51/mmbtu(2) ($317/Mcm) FX 2012 full year average wellhead price Strong and growing production and revenues • 2011: 12 Mmcfe/d (322 Mcme/d) net to FX; net revenues of approx. $26mm • 2012: 13.1 Mmcfe/d (354 Mcme/d) net to FX; net revenues of approx. $31mm • 2013: 14.0 Mmcfe/d (375 Mcme/d) net to FX 1Q2013 forecast; Lisewo facility scheduled to start 2H13 Major increase in drilling activity – potential for significant discoveries • 2012 E&P spending: $36 million, plus $20 more for ops running over year end • 2013 E&P commitments anticipated to be $60-70 million • Two-thirds focused on increasing reserves and production in core area (Fences) • One-third focused on finding new production areas (Edge, Block 229, Warsaw South, Block 246) • Tuchola-3 (Edge concession) started drilling 12/2012; Mieczewo (Fences) started drilling 1/2013 • 2013: 2-3 additional wells planned for Fences Lisewo area; 2-4 more non-Fences wells Note: (1) As per RPS Energy and Hohn Engineering as of 12/31/2012NASDAQ: FXEN (2) Based on $1=pln3.26 avg. for full year 2012; at 3/14/2013 $1 ≈ PLN 3.20 5
  6. 6. WHY POLAND? Sound economy; rule of law Untapped conventional resources Strong gas market Attractive economics 6
  7. 7. Poland: Stable & Growing in the EU Size: 312,000 sq. km (120,000 sq. mi.); comparable to Germany - or New Mexico Population: 38 million people; well educated, multi-lingual, culturally homogeneous; (Germany has 80 million; France and UK have 60 million each) Political stability: Poland is a member of the European Union (EU) and NATO; it has a long history of adhering to the rule of law Economy: • Poland is Europe’s sixth largest economy • Poland has its own currency (zloty) and its own central bank • Poland’s GDP has continued to grow steadily despite recession in the rest of the EUNASDAQ: FXEN 7
  8. 8. Untapped Resources in Poland Poland has significant hydrocarbon potential North • Geology doesn’t stop at the border; Poland European is just under-explored Permian Basin • Permian Basin extends across Europe: Permian (Rotliegend) gas fields in Poland FX are direct analogs to those found in the UK and Dutch sectors of the Southern North Sea and onshore Holland and Germany • Only one company (state owned) was exploring Poland during the Iron Curtain decades 60 Tcf 150 Tcf 40 Tcf 5 Tcf • The North Sea was (and is) explored by 1.6 Tcm 4.0 Tcm 1.1 Tcm 0.1 Tcm dozens of companies NASDAQ: FXEN 8
  9. 9. Gas Supply is Tight  Europe imports 1/2 of its gas supply from Russia  Poland imports 2/3 of its gas supply from Russia/Gazprom • Domestic production: 430 Mmcf/day; 156 Bcf/year (11,500 mcm/day; 4.2 bcm/year) • Imports: 1.0 Bcf/day; 377 Bcf/year; (27,000 mcm/day; 10.1 bcm/year)  Russian gas exports get interrupted or withheld • Politics, limited infrastructure, and tough business practices are common reasons  Russian gas prices are tied to oil  LNG is too small to shift the balance Nord Stream now operationalNASDAQ: FXEN 9
  10. 10. Gas Prices Are High and Holding  Natural gas in Europe is near $12 per Mcf ($448/Mcm) • European gas prices are much higher than US Henry Hub – reflecting dependence on Russia • European prices are heavily linked to oil  Long term growth factors point to increasing Polish gas consumption – if supply available • Natural gas in Poland is only 13% of primary energy vs. 23% in US and 24% in EU • Coal provides more than 60% of primary energy in Poland vs. 22% in the US and 18% in the EU • EU environmental mandates call for gas to replace coal Polish High Methane Gas Tariff - PLN/1000m3 Polish Gas Price vs US Henry Hub ($/mcf) 1,400 zł $16.00 1,200 zł $14.00 Poland 1,000 zł $12.00 US 800 zł $10.00 $8.00 600 zł $6.00 400 zł $4.00 200 zł $2.00 0 zł $0.00 Jan-03 Jul-05 Jun-07 Jan-10 Mar-06 Mar-13 Feb-08 Aug-03 Dec-04 Nov-06 Sep-10 Dec-11 Aug-12 Apr-04 Oct-08 May-09 Apr-11 Jul-12 Jan-03 Jul-05 Jun-07 Jan-10 Mar-06 Mar-13 Feb-08 Aug-03 Nov-04 Sep-08 Aug-10 Dec-11 Apr-04 Oct-06 May-09 Apr-11NASDAQ: FXEN 10
  11. 11. Attractive Production Economics  Lower costs in Poland than in US Production Economics - Poland v. US • Low taxes: 19% vs. 40% $8.00 • Low lifting costs: $0.25 vs. $1.84 • Low royalties: 1% vs. 19% $7.00 $0.51 • FX 8 year F&D costs = $2.92/Mcfe  Tax rise talks: not now $6.00 Cash • Proposal to increase royalty to @10% - if $2.87 Margin $3.33 $5.00 commercial production from shale play F&D • Proposal to increase “all in” tax rate to Taxes 40% on hydrocarbons “in 10 to 15 years” $4.00 LOE  FX wellhead price (2012 full year) $3.00 $0.34 • $8.51/mmbtu ($317/Mcm) Royalty $2.92 $1.77 • $6.81/mcf ($254/Mcm) $2.00 • FX gas is 80% methane / 20% nitrogen FXEN Avg. PLN Gas Price $1.00 1000 $8 $0.67 $0.25 $1.40 900 $0.04 $7 800 $-PLN/000m3 700 $6 FX Poland JP Morgan $/Mcf 600 $5 (1) FX Poland 2012 (2) US Independents 2012 estimate 500 $4 a) wellhead price: $8.51/mmbtu; $6.81/Mcfe (per JP Morgan 3/18/2013) 400 b) royalty rate: 0.60% a) wellhead price: $7.35/Mcfe (44% oil) c) LOE: $0.25/Mcfe b) royalty rate: 19% 300 $3 d) Polish income tax rate: 19% of net income c) forecast 2012 LOE: $1.77/Mcfe NASDAQ: FXEN e) $1=PLN 3.26 average full year 2012 d) US income tax rate: 40% 11
  12. 12. Corporate Structure; Poland in-Country Team Executive Directors Non-Executive Directors Richard Jerzy Maciolek Hardman Arnold Dennis H. Allen David Pierce Tom Lovejoy VP International Non Exec. Grundvig, Jr. Goldstein Turner President and Executive VP Exploration, Director, Chief Non Exec. Non Exec. Non Exec. CEO, Director and Chairman Director Technical Director Director Director Advisor In-Country Team Eva Sokolowski Jerzy Maciolek Director of Zbigniew Tatys Andy Pierce Clay Newton VP International Operations Country Manager VP Operations VP Finance Exploration Administration Production Engineering Geology/Geophysics Drilling Accounting/Administrative 3 in Poland 10 in Poland 3 in Poland 3 in Poland 1 in UK Jerzy Maciolek, Director, VP International Exploration – a proven explorer in  Richard Hardman, CBE, Director – the leading figure in North Sea exploration Poland • 40 year international exploration career; VP Exploration for Amerada • Brilliant explorationist and the driving force behind FXEN in Poland Hess 1983-2002 • Received Gulf Oil President’s award for outstanding research • Responsible for key Amerada N. Sea discoveries – Valhall, Scott, S. Arne • Geophysical degrees from Mining and Metallurgical Academy, Krakow, • Awarded CBE; served as: Chairman, PESGB; Pres., Geological Society; Poland Pres., AAPG Europe Zbigniew Tatys, Head of Warsaw Office – proven leader with extensive  Jack Scott, Consulting Petroleum Engineer – analogous Rotliegend experience production experience in Poland • Rotliegend experience with Ranger Oil (UK) and Pennzoil (Netherlands) • 20 year career with PGNiG; former General Director of PGNiG’s • 35 years of international experience Upstream E&P DivisionNASDAQ: FXEN 12
  13. 13. PRODUCTION and DEVELOPMENT --- The Fences Concession 2013 Capital Allocation (est.) 35.0%FencesNon-Fences 65.0% 13
  14. 14. Reserves Growth Track Record P-50 Reserves - PV-10 (pre-tax millions) P-50 Reserves vs. Production (bcfe) $300 100 100 90 $250 Poland 80 Year-end 80 Reserves US 70 $200 Production 60 60 $150 50 40 40 $100 30 $50 20 20 10 $0 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012  $243 million P50 (2P) reserves pv-10 pre-tax at 12/31/2012  $4.56/share at 12/31/2012 – before prospect and acreage value  Over 90% of 2012 company wide reserves come from just 9 wells (out of 12 Rotliegend structural traps drilled) in the PV-10 “Fences” concession 2012 (pre-tax Reserves Bcfe Bcm millions)  New 3D shows many good prospects in Lisewo area of Fences; two already drilled with positive results P90 (1P) 48 1.3 $178  2013 goal: drill Mieczewo plus 2-4 more wells in the Lisewo P50 (2P) 79 2.1 $243 area, plus test Plawce well; Zaniemysl-4 under consideration P10 (3P) 127 3.4 $296 Source: RPS Energy and Hohn EngineeringNASDAQ: FXEN 14
  15. 15. Production Growth  Strong production growth from wells already drilled and tested • 2011: 12.0 Mmcfe/d (322 Mcme/d) net to FX; net revenues of approx. $26mm • 2012: 13.1 Mmcfe/d (354 Mcme/d) net to FX; net revenues of approx. $31mm • 2013: 14.0 Mmcfe/d (375 Mcme/d) net to FX 1Q2013 forecast; Lisewo facility scheduled to start in 2H13  In a “no-success” case on all future drilling, FX still generates significant net revenue from existing wells Estimated Future Net Revenues from Producing P90 Production Forecast - avg. daily Properties P50 Reserves ($millions) 20.0 600 $45 500 $40 16.0 WG / Lisewo1 / K-3K $35 Existing Gas 400 $30Mmcfe/day Mcm/day 12.0 $25 Existing Oil 300 $20 8.0 200 $15 12-31-2012 Reserve Report $10 4.0 100 $5 0.0 0 $0 2003 2005 2007 2009 2011 2013 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Above chart is actual through 2012; 2013-2014 forecast from Above chart is from the FX Energy 12/31/2012 independent 12/31/2012 independent reserve reports as filed with the SEC(1), reserve reports as filed with the SEC(1), but excludes Lisewo-2 and excluding Lisewo-2 and Zaniemysl-4 Zaniemysl-4. Based on $6.60/mcf first-day-of-month average 2012 wellhead gas price held constant.NASDAQ: FXEN Note: (1) As per RPS Energy and Hohn Engineering 15
  16. 16. Long Lived Wells Average Fences Well - Production Profile Economics: Average of 9 Fences Wells (100%)* 6.0 180 160 Well cost (current estimated) $10 mm 140Mmcfe/day 4.0 120 Mcme/day 100 Facilities cost (current estimated) $5 mm P50 Production 80 2.0 Forecast 60 Pre-tax 1P/2P value (PV-10) (avg.) $58/$72 mm P90 Production 40 Forecast 20 - - 1P/2P cumulative undiscounted net cash $75/$112 mm 1 2 3 4 5 6 7 8 9 10 11 12 flow (avg.) Year Pre-tax 1P/2P reserves (avg.) 15/21 Bcf (0.4/0.6 Bcm) Zaniemysl Well - Daily Production (Mmcfd) Initial production rate (avg.) 5.0 Mmcf/d 12.0 (134 Mcm/d) Actual Production 10.0 2006 Y/E P50 Forecast Royalty (current) $0.04/mcf 8.0Mmcf/day 2006 Y/E P90 Forecast 6.0 *NOTES: Averages based on 2012 SEC reserve report for 9 4.0 Fences wells: Kleka, Zaniemysl-3, Sroda-4, Winna Gora, 2.0 Roszkow, Kromolice-1, Kromolice-2, Lisewo-1 and Komorze-3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Figures include only reserves in wells already drilled Year All figures are for 100% working interestNASDAQ: FXEN 16
  17. 17. Fences Concession – FX Core Area PGNiG’s Paproc field 267 Bcf (7.2 Bcm) disc. 1982 Fences Fences FX 49% PGNiG’s Radlin field 390 Bcf (10.5 Bcm) FX 24.5% disc. 1985 Rotliegend gas potential • Rotliegend gas fields from the Block 246 1980’s showed area potential FX 100% • PGNiG had moved on to other plays (Zechstein) in Poland • Seismic advances from the North Sea had not been applied • FX saw high potential with limited “wildcat” risk Fences concession: 850,000 acres (3,440 km2) surrounding • Fences: FX earned 49%; PGNiG PGNiG’s 390 Bcf (10.5 Bcm) Radlin Gas Field holds 51% and operates NASDAQ: FXEN 17
  18. 18. Results to Date in Fences Concession Commercial Discoveries Gross P50 Reserves(1) /wellKleka-11 3 bcf 0.1 bcm Fences ConcessionZaniemysl 30 bcf 0.8 bcm Kromolice-1Sroda-4 25 bcf 0.7 bcm Kromolice-2 Sroda-4Winna Gora 17 bcf 0.5 bcmRoszkow 33 bcf 0.9 bcm Winna Gora Komorze-3Kromolice-1 24 bcf 0.6 bcm Lisewo-1Kromolice-2 15 bcf 0.4 bcm ZaniemyslLisewo-1 43 bcf 1.2 bcmKomorze-3 7 bcf 0.2 bcmTotal 197 bcf 5.3 bcm Kleka-11 (1) P50 Estimated Ultimate Recovery Roszkow Fences  9 commercial successes out of 12 wells (75%) targeting Rotliegend structural traps • 9 discoveries averaged 15/21 Bcf 1P/2P (0.4/0.6 Bcm) ($58/$72 million pre-tax pv10%) • Now producing; Zaniemysl-3, Roszkow, Kromolice-1, Kromolice-2, Sroda-4 and Winna Gora (Kleka-11 has been depleted) NASDAQ: FXEN • Lisewo-1 and Komorze-3 to start production 2H2013 18
  19. 19. 2013 Operations Plan Plawce-2 frac/test 1H2013 Fences Concession Fences Mieczewo spud 1/2013 Lisewo/Komorze production 2H2013 WG Komorze-3 Zaniemysl-4? prod 1Q2013 Lisewo-2: 1H2013 2012 Carryover Operations • Production: Winna Gora facility came online 1Q2013 • Drilling: Mieczewo-1 started drilling January 2013; Plawce-2 frac scheduled 2Q2013; Zaniemysl-4 under consideration • 3-D seismic: continue expanding 3-D coverage for drilling targets beyond 2013  2013 Operations • Build Production in Lisewo Area: Lisewo-1 and Komorze-3 to start production in 2H2013, along with Lisewo-2 if successful • Drilling in Lisewo Area: many good prospects on new 3D seismic in LisewoNASDAQ: FXEN area; two are discoveries; FX goal: drill 2-4 more in Lisewo area in 2013 19
  20. 20. Lisewo Area Potential Lisewo area 3-D • Lisewo-1 and Komorze-3 discoveries: aggregate 50 Bcf (1.3 Bcm) P50 gross; aggregate production rate est. 6-7 mmcf/d (161-188 Mmcm/d) gross Paruchow-W/E Komorze-3 discovery • production facility to start 2H2013 Baraniec • 2-4 more Lisewo area wells planned for 2013; Przybyslaw Ciemierow • 8 new well locations selected by (Komorze-4) FX/PGNiG Lisewo-1 discovery • Aggregate additional recoverable Tomice gas could be 200-400 Bcf (5.4 – 10.7 Bcm) gross Szymanowice • FX holds 49%; PGNiG 51% and operates Szymanowice-S Fences Concession Broniszewice Lisewo AreaNASDAQ: FXEN 20
  21. 21. HIGH POTENTIAL EXPLORATION --- Outside the Fences Concession 2013 Capital Allocation (est.) 35.0%FencesNon-Fences 65.0% 21
  22. 22. FX Concession Strategy Fences Concession • Located on Rotliegend basin edge in the path of gas migration • Existing Rotliegend fields mean lower exploration risk • Goal: build reserves and production to fund Fences growth; use some of the revenues to explore other concessions Non-Fences Concessions • Potentially higher upside than Fences, but with higher risk • Possibility of other play types not Fences previously tested in Poland • Opportunity to bring outside experience to bear on the hydrocarbon opportunityNASDAQ: FXEN 22
  23. 23. FX Energy Exploration Concessions Optionality: High Impact Exploration • High potential identified in large exploration concessions covering over two million acres • 2-3 new wells planned for 2013 in non-Fences concessions Edge • Edge: Tuchola-3 drilling now • Block 229: large Ca2/Main Dolomite targets • Block 246: Frankowo-1 well results encouraging for 3D seismic focused on Rotliegend and Main Dolomite targets Warsaw S. • Warsaw S: three large Carboniferous leads • High graded acreage to focus exploration 246 229 Gross Working Net Net Fences (mm acres) Interest (mm acres) (km2) Fences 0.85 49% 0.41 1,647 Block 229 0.23 100% 0.23 941 Block 246 0.24 100% 0.24 975 Warsaw S. 0.47 51% 0.24 976 Edge 0.88 100% 0.88 3,567 Block 287 0.01 100% 0.01 52 2.68 2.01 8,158 Main gas distribution lines in red NASDAQ: FXEN 23
  24. 24. Edge Concession – Tuchola-3K Well Ca2 2600m Apache Tuchola-2 (2001) tested gas Tuchola 3-K Edge drilling Devonian 3800m Edge concessions Tuchola prospect Edge Concessions • 880,000 gross and net acres/3,567 km2; FX operates, holds 100%. Unislaw prospect • Tuchola-3K drilling: Ca2 gas potential up to 30 Bcf recoverable at 2600m; plus Devonian oil potential up to 70 mmbo in place at 3800m • The 2001 Apache Tuchola-2 well tested Ca2 gas at 9.5 mmcf/d; 90 Bcf (2.4 Bcm) of p50 reserves; over-ambitious acid job drew in water • Tuchola-3 well started drilling 12/2012; 1-2 more Edge wells in 2013NASDAQ: FXEN 24
  25. 25. Block 229 Block 229 Lead-1 Lead-1FencesConcession Grundy 2: 23 meters of Ca2, porosity 10-30%  Block 229 Concession • 232,500 gross and net acres; 941 km2; FX operates and holds 100% • Five reef prospects: Ca2 potential – analog to PGNiG’s BMB and LMG fields, 229 with reported aggregate 1 Tcfe (27 Bcme) recoverable oil and gas • Block 229 leads (5) cover more total acreage than BMB at about 4000 meters • Plan drill site 2D seismic in 2013 to set up a well for 2014 NASDAQ: FXEN 25
  26. 26. Block 246 Block 246 Bronsko field concession 700 Bcf Koscian field 300 Bcf Frankowo-1 Frankowo-1 Map: Top Main Dolomite Block 246 Concession • 240,000 acres/975 km2; FX operates, holds 100% • Updip from 1 Tcf (27 Bcm) Ca1 production in Bronsko/Koscian fields • Frankowo-1 well opens up Ca2/Main Dolomite and Rotliegend potential in 246 southeastern portion of Block 246 at shallow depth: 1500 to 2200 meters • 2013: acquire regional 3D seismic • 2014: appraisal/development drilling as warrantedNASDAQ: FXEN 26
  27. 27. Warsaw South ConcessionsWarsaw South Warsaw Southconcessions concessions Potycz Michrow Potycz Grojec prospect Machnatka Grojec Machnatka prospect Zabienec P&A prospect Boglewice Boglewic e prospect Major strat trap and structure potential 40kms Warsaw South Concessions • 470,000 acres/1,952 km2 gross; FX operates, holds 51% ; PGNiG earned 49% • Terminus of the Permian Basin; prime location for trapping; Ca1/reef, Carboniferous and Rotliegend leads W-S • FX’ first well (Machnatka-2, P&A) found no trap, but did see continuous gas shows and good porosity (over 50 net meters above 11% average) in lower Carboniferous sands • Currently acquiring/interpreting new 2D seismic; possibility to drill in 2013NASDAQ: FXEN 27
  28. 28. Upside Potential in 5 Project Areas  FX 2012 year end reserves • 79 Bcfe (2.1 Bcme) of 2P(P50) reserves at 12/31/2012; $243 mm pre-tax pv10% • Each of the projects below has the potential to more than double those numbers  Fences • Lisewo Area: Potential up to 100-200 Bcf (2.7–5.4 Bcm) net to FX fully developed from multiple prospects on 3-D seismic (plus Lisewo-1 and Komorze-3 discoveries); 2-4 new wells planned for 2013 in Lisewo area • Plawce: Potential up to 125 Bcf (3.4 Bcm) net to FX fully developed from tight sand prospect; Plawce-2 well to frac and test 2Q2013  Edge (Tuchola-3) • Potential up to 110 Bcfe (2.9 Bcme) net to FX fully developed from Tuchola prospect: potential for gas in Ca2 and oil in Devonian; started drilling 12/2012; 1-2 more wells planned for 2013  Warsaw South • New seismic on two large prospects; possibility to drill in 2013  Block 246 (Frankowo-1) • Frankowo-1 well provided data and encouragement; regional 3D seismic in 2013 planned for Main Dolomite and Rotliegend; appraisal/development drilling in 2014 as warranted  Block 229 (Ca2/Main Dolomite) • Potential up to several hundred Bcfe including oil potential; analog to PGNiG’s 1Tcfe (27 Bcme) BMB and LMG fields; drillsite seismic this winter, first well 2014NASDAQ: FXEN 28
  29. 29. NAV and Forward Drilling Program Net Asset Value (NAV) Analysis ($ in millions, except per share amounts) Total per share per share P50 reserves value pre-tax 12/31/12 $243 $4.56 $4.56 Cash at 12/31/2012 $40 $0.75 $0.75 Long-term Debt at 12/31/2012 $(40) ($0.75) ($0.75) P-50 Net Asset Value $243 $4.56 $4.56 Undrilled Potential Potential FX Net Net Potential Est. Net Risked Unrisked Net Cost to FX Recoverable Interest Recoverable Chance of Value (mm) Value Value (mm) Prospect (Bcfe) (Bcme) after 1st well (Bcfe) (Bcme) Success * per share per share First Well Fences - Lisewo 9 structures 225 6.0 49% 110 3.0 75% $254 $4.76 $6.35 $5 Fences - Lisewo upside 240 6.4 49% 118 3.2 20% $72 $1.35 $6.77 $5 Fences - Plawce (tight gas) 250 6.7 49% 123 3.3 50% $188 $3.53 $7.06 $7 Fences - Mieczewo 30 0.8 49% 15 0.4 50% $23 $0.42 $0.85 $5 Fences - Miloslaw 50 1.3 49% 25 0.7 20% $15 $0.28 $1.41 $5 Fences - Plawce East 875 23.5 49% 429 11.5 20% $263 $4.94 $24.70 $5 Edge - Tuchola 110 2.9 100% 110 2.9 20% $68 $1.27 $6.34 $10 Edge - Unislaw 110 2.9 100% 110 2.9 20% $68 $1.27 $6.34 $12 Block 229 Main Dolomite 450 12.1 100% 450 12.1 20% $276 $5.18 $25.92 $12 Block 246 - Gorka Duchowna 50 1.3 100% 50 1.3 20% $31 $0.58 $2.88 $6 WS - Grojec 100 2.7 51% 51 1.4 20% $31 $0.59 $2.94 $5 WS - Boglewice 200 5.4 51% 102 2.7 20% $63 $1.18 $5.88 $5 WS - Potycz 90 2.4 51% 46 1.2 20% $28 $0.53 $2.64 $5 Total Risked Potential 2,780 74.5 1,737 46.6 $1,379 $25.88 $100.06 $87 Shares Outstanding (millions) 53.3 53.3 Risked Discovery Potential and Net Asset Value Per Share $30.44 $104.62Note: estimated net value calculated at $3.07/mcf or $115/mcm; $3.07 is the average 2P (P50) pv-10 value in the Company’s 12/31/2012 reservereport. (The 1P (P90) value is $3.81/mcf.) Development costs are not shown and may be expected to vary considerably from project to project. NASDAQ: FXEN 29
  30. 30. Zaniemysl Production Facility Grabowka JV Roszkow Production Zaniemysl-3 Drilling Jerzy Maciolek, Zbigniew Facility Tatys, Eva Sokolowski, David Pierce, Piotr Buszka Mar. 9, 2009 Jan. 26, 2007 Oct. 30, 2003 Aug. 7, 2003 Wilga Production Roszkow Production Facility Facility Ostrowiec Drill Pad Seismic Acquisition Andy Pierce, Aleksander Zbigniew Kulczak, Clay Zerkow-Pleszew Nowak Newton, Tom Lovejoy, David Pierce, Zbigniew Tatys Jun. 3, 2009 Aug. 6, 2003 Ostrowiec Winna Gora Ostrowiec Well production Well May 29, 2009 Oct. 1, 2008 test flareZaniemysl Well First FX Concessions Kromolice-2 Head David Pierce, Dr. rig and production test flare Krzysztof Szamalek, Marek Hoffmann, Tomasz Minkiewicz Dec. 16, 2003 May 26, 2009 Feb. 14, 2007 May 29, 2009 Aug. 22, 1995 Mar. 13, 2009Ostrowiec Well Rig floor Zaniemysl-3 Drilling Ostrowiec Drillsite Henry Dytko, Andy Pierce, Kromolice-1 Aleksander Nowak rig floor during drill stem test May. 29, 2009 Oct. 25, 2003 June 2, 2009 Aug. 2, 2008

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