FX Energy to Plug and Abandon Ostrowiec-1 Well

SALT LAKE CITY, Aug. 27 /PRNewswire-FirstCall/ -- FX Energy, Inc. (Nasdaq:
FXEN) reported that drilling operations at the Ostrowiec-1 wildcat well have
stopped and the well will be plugged and abandoned. The decision not to
continue drilling was made after the well encountered extremely high pressure
non-flammable nitrogen gas with 4.6% hydrogen sulfide content and lost
circulation while coring the Main Dolomite Ca2 target reservoir. During
efforts to control the inflow of gas nearly 1.6 million pounds of mud were
lost into the formation. The Ostrowiec-1 well is owned 49% by the Polish Oil
and Gas Company (POGC) and 51% by FX Energy.

"The combination of extremely high pressure hydrogen sulfide gas and lost
circulation problems were determining factors in the decision by both FX
Energy and POGC to abandon the well," said Andy Pierce VP of Operations for FX
Energy. "Attempts at continued drilling to test the remaining section of the
Main Dolomite and the deeper potential target in the Rotliegend would unduly
expose both companies to financial risks and possible health and safety
hazards," said Pierce.

"We recognize and accept the high risks associated with high potential
exploration. That is why we carry out our exploration work with the financial
support of industry partners, as was the case with the Ostrowiec well. We
intend to continue our exploration activities in this manner, while focusing
the majority of our resources on our main business of developing reserves in
our core Fences area. To that end we are mapping some promising targets in the
Fences concession. We anticipate being able to show these targets next month
and actually start drilling the first of them later this year," said David
Pierce, president of FX Energy.

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

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

SOURCE FX Energy, Inc.

Scott J. Duncan of FX Energy, Inc., +1-801-486-5555, Fax, +1-801-486-5575