August 28, 2009 (FinancialWire) — FX Energy, Inc. (NASDAQ: FXEN) (Current Market Cap: $151.99 Mil.) said it has stopped drilling operations at its Ostrowiec-1 wildcat well in Poland, and that the well will be plugged and abandoned.

According to FX, 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, according to the company.

The Ostrowiec-1 well is owned 49% by the Polish Oil and Gas Co. and 51% by FX Energy.

Andy Pierce FX’s VP of operations, said, “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.”

Salt Lake City, Utah-based FX Energy is an independent oil and gas exploration and production company with production in the U.S. and Poland. The company’s main exploration activity is focused on Poland’s Permian Basin.

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