FX Energy Announces First Quarter Results

SALT LAKE CITY, UT, May 11 (MARKET WIRE) --
FX Energy, Inc. (NASDAQ: FXEN) today announced financial results for its
first quarter ended March 31, 2009. The Company reported net earnings of
$(24.4) million, or $(0.58) per share for the first quarter of 2009.
Excluding non-cash foreign currency exchange losses of $(20.4) million,
the Company's first quarter loss would have been $(4.0) million, or
$(0.09) per share, approximately equal to the $(4.3) million, or $(0.11)
per share reported in the first quarter of 2008.

The Company's total net production decreased from 419 Mmcfe during the
first quarter of 2008 to 378 Mmcfe during the 2009 quarter. The production
decline is due almost entirely to the Company's Wilga well in eastern
Poland, where production is projected to continue declining throughout the
year. However, production from the Company's largest discovery to date,
the Roszkow well, is planned to start later this year, which is expected
to put daily production at year-end 2009 well ahead of 2007 and 2008
year-end production levels.

Lower oil and gas revenues contributed to the loss, declining from $3.3
million during the 2008 first quarter to $1.8 million during the 2009
first quarter. Oil prices during the first quarter of 2009 averaged
$33.94 per barrel, compared to $86.10 per barrel during the same quarter
of 2008, a decrease of 61%. Gas prices in Poland were higher in the 2009
first quarter than in the same quarter of 2008, but the weaker Polish
zloty resulted in a decrease in average Polish gas prices when converted
to U.S. dollars. The average exchange rate during the first quarter of
2008 was 2.39 zlotys per U.S. dollar. The average exchange rate during
the first quarter of 2009 dropped to 3.45 zlotys per U.S. dollar, a
change of 45%.

"Despite the fact that our gas prices in Polish zlotys were actually 25%
higher this year compared to last year, the weaker zloty resulted in a 25%
decrease in U.S. reported average gas prices for the quarter," said David
N. Pierce, CEO. "However, the situation is reversed for our drilling,
operating and exploration costs. Exchange rates may continue to be
volatile, and in fact the zloty is stronger now than it was at the end of
the first quarter."

The non-cash foreign exchange charge of $20.4 million for the first
quarter of 2009 is included in other income and expense. The charge comes
primarily from recognition of gains and losses on intercompany loans from
FX Energy, Inc., to FX Poland, our wholly-owned subsidiary. These are
non-cash losses only, and could vary greatly depending upon future
exchange rate changes.

The Company reported negative U.S. dollar denominated earnings before
interest, taxes, depreciation, amortization, exploration expense, and
other non-cash charges (EBITDAX)(1). EBITDAX during the first quarter of
2009 was $(0.7) million, compared to $1.2 million in the first quarter of
2008. At March 31, 2009, the Company's cash and investments were $9.1
million.

Earnings Conference Call Tomorrow, Tuesday, May 12, 2009 at 12:00 PM.
Eastern (10:00 AM. Mountain)

The Company will host a conference call and webcast tomorrow to discuss
2009 first quarter results and update operational items at 12:00 p.m.
Eastern Time. Conference call information is as follows: US
dial-in-number: 877-741-4251; International dial-in-number: 719-325-4804;
Passcode: 6770564. Request: FX Energy, Inc. Conference Call.

The call will also be webcast live and interested parties may access the
webcast through FX Energy's homepage at www.fxenergy.com. A rebroadcast
will also be available through the Company's website. For those that are
unable to participate in the live call, a rebroadcast will be available
for two weeks beginning one hour after the completion of the call.

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
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

(1) Explanation and Reconciliation of Non-GAAP Financial Measures

Earnings before interest, taxes, depreciation, amortization, exploration
expense, and other non-cash charges (EBITDAX) is a non-GAAP measure
presented because of its acceptance as an indicator of an oil and gas
exploration and production Company's ability to internally fund
exploration and development activities and to service debt. EBITDAX
should not be considered in isolation or as a substitute for operating
income prepared in accordance with generally accepted accounting
principles. The table below reconciles EBITDAX with income from
continuing operations as derived from the Company's financial information.

EBITDAX: Year Ended
31-Mar-09 31-Mar-08
---------- ----------
Net loss ($ 24,404) ($ 4,292)
Foreign exchange loss (gain) 20,450 (23)
Interest income and expense, net 135 (23)
Depletion, depreciation and amortization 374 715
Exploration expense 2,120 4,051
Other non-cash items 616 774
========== ==========
EBITDAX ($ 709) $ 1,202
---------- ----------

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. Forward-looking
statements are not guarantees. For example, exploration, drilling,
development, construction or other projects or operations may be subject
to the successful completion of technical work; environmental,
governmental or partner approvals; equipment availability, or other
things that are or may be beyond the control of the Company. Operations
that are anticipated, 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 is necessary to identify and evaluate risks
and potential rewards. This identification and evaluation is informed by
science but remains inherently uncertain. Subsurface features that appear
to be 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 conditions that 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 to exploration 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.

Forward-looking statements are subject to risks and uncertainties outside
FX Energy's control. Actual events or results may differ materially from
the forward-looking statements. For a discussion of additional
contingencies and uncertainties to which information respecting future
events is subject, see FX Energy's SEC reports or visit FX Energy's
website at www.fxenergy.com.

FX ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands)

March 31, December 31,
2009 2008
---------- ----------
ASSETS

Current assets:
Cash and cash equivalents $ 8,306 $ 16,588
Marketable securities 817 4,105
Receivables:
Accrued oil and gas sales 1,098 1,093
Other receivables 68 1,720
Input VAT receivable 1,239 2,514
Inventory 216 211
Other current assets 394 450
---------- ----------
Total current assets 12,138 26,681
---------- ----------

Property and equipment, at cost:
Oil and gas properties (successful efforts
method):
Proved 26,393 28,600
Unproved 2,474 2,770
Other property and equipment 7,084 6,667
---------- ----------
Gross property and equipment 35,951 38,037
Less accumulated depreciation, depletion and
amortization (10,994) (11,164)
---------- ----------
Net property and equipment 24,957 26,873
---------- ----------

Other assets:
Certificates of deposit 406 406
Loan fees 850 842
---------- ----------
Total other assets 1,256 1,248
---------- ----------

Total assets $ 38,351 $ 54,802
========== ==========

FX ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
-Continued-

March 31, December 31,
2009 2008
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 3,652 $ 7,779
Accrued liabilities 603 4,937
---------- ----------
Total current liabilities 4,255 12,716
---------- ----------

Long-term liabilities:
Notes payable 25,000 25,000
Asset retirement obligation 1,851 1,932
---------- ----------
Total long-term liabilities 26,851 26,932
---------- ----------

Total liabilities 31,106 39,648
---------- ----------

Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000
shares authorized as of March 31, 2009 and
December 31, 2008; no shares outstanding -- --
Common stock, $0.001 par value, 100,000,000 shares
authorized as of March 31, 2009 and December 31, 2008;
42,451,978 and 42,202,878 shares issued and outstanding
as of March 31, 2009 and December 31, 2008,
respectively 42 42
Additional paid in capital 159,209 158,075
Cumulative translation adjustment 32,498 17,137
Accumulated deficit (184,504) (160,100)
---------- ----------
Total stockholders' equity 7,245 15,154
---------- ----------

Total liabilities and stockholders' equity $ 38,351 $ 54,802
========== ==========

FX ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except per share amounts)

For the Three Months
Ended
March 31,
-----------------------
2009 2008
---------- ----------
Revenues:
Oil and gas sales $ 1,762 $ 3,271
Oilfield services 20 954
---------- ----------
Total revenues 1,782 4,225
---------- ----------
Operating costs and expenses:
Lease operating expenses 747 877
Exploration costs 2,120 4,051
Oilfield services costs 181 567
Depreciation, depletion and amortization 374 715
Accretion expense 8 21
Stock compensation 439 626
General and administrative costs 1,732 1,706
---------- ----------
Total operating costs and expenses 5,601 8,563
---------- ----------
Operating loss (3,819) (4,338)
---------- ----------

Other income (loss):
Interest income (expense), net and
other income (expense) (135) 23
Foreign exchange gain (loss) (20,450) 23
---------- ----------
Total other income (expense) (20,585) 46
---------- ----------

Net loss $ (24,404) $ (4,292)
========== ==========

Other comprehensive income (loss):
Foreign currency translation adjustment 15,361 --
Decrease in market value of available for sale
marketable securities -- (305)
---------- ----------
Comprehensive loss $ (9,043) $ (4,597)
========== ==========

Basic and diluted net loss per common share $ (0.58) $ (0.11)
========== ==========

Basic and diluted weighted average number of
shares outstanding 42,396 39,053
========== ==========

FX ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

For the Three Months
Ended
March 31,
-----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net loss $ (24,404) $ (4,292)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation, depletion and amortization 374 715
Accretion expense 8 21
Amortization of bank fees 46 46
Stock compensation 439 626
Foreign exchange losses 19,025 --
Common stock issued for services 709 665
Increase (decrease) from changes in working
capital items:
Receivables 1,881 (1,082)
Inventory (5) (31)
Other current assets 41 78
Other assets (61) --
Accounts payable and accrued liabilities (4,659) (1,295)
---------- ----------
Net cash used in operating activities (6,606) (4,549)
---------- ----------

Cash flows from investing activities:
Additions to oil and gas properties (2,472) (743)
Additions to other property and equipment (433) (308)
Additions to marketable securities (10) (68)
Proceeds from maturities of marketable securities 3,798 3,500
---------- ----------
Net cash provided by investing activities 883 2,381
---------- ----------

Cash flows from financing activities:
Payments on loan related to auction rate
securities (2,408) --
Proceeds from exercise of stock options and
warrants -- 7,169
---------- ----------
Net cash (used in) provided by financing
activities (2,408) 7,169
---------- ----------

Effect of exchange rate changes on cash (151) --
---------- ----------

Net increase (decrease) in cash (8,282) 5,001
Cash and cash equivalents at beginning of year 16,588 4,262
---------- ----------

Cash and cash equivalents at end of period $ 8,306 $ 9,263
========== ==========

Contact:
Scott J. Duncan
FX Energy, Inc.
3006 Highland Drive, Suite 206
Salt Lake City, Utah 84106
(801) 486-5555
Fax (801) 486-5575
www.fxenergy.com

Copyright 2009, Market Wire, All rights reserved.

-0-