FX Energy Updates Status of Credit Facility; Liquidity Position Enhancedadmin
FX Energy, Inc. reported that it has taken steps to improve its already liquid balance sheet. The Company has drawn an additional $14 million under its Senior Credit Facility through the Royal Bank of Scotland (RBS). Including previous cash on hand, the $5 million drawn and announced previously, and this new funding, the Company now has approximately $24 million in liquid assets. The most recent draw brings the total amount outstanding with RBS to $25 million, the total amount currently available under the Facility. For the short-term, the proceeds will be invested in US treasury bills.
Liquidity for Expanding Operations and Increasing Cash Flow
The primary long-term use for the cash will be to fund the development of the Company’s existing Polish natural gas properties. This development includes, but is not limited to, construction of new gas processing facilities. Recently, construction plans and contracts were approved for the production and processing facilities for the Company’s Roszkow-1 well. Production from this well is expected to materially increase the Company’s cash flow in 2009. Completion of production facilities and first production are expected to occur in the first quarter of 2009.
Clay Newton, Vice President – Finance, said, “First, with our previous cash balances, existing cash flow and these new proceeds, we are well-equipped to maintain our operational and financial momentum. Second, in these times of financial challenge, we are impressed with RBS as a steady and committed financial source. Their continued support and confidence in our ability to execute on our ongoing development plans are of considerable value to us.”
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.