UPDATE: Euro Pacific Capital Initiates FX Energy at Speculative Buy Following Discoveries in Poland

In a report published Friday, Euro Pacific Capital analyst Joel Musante initiated coverage on FX Energy (NASDAQ: FXEN) with a Speculative Buy rating and $5.50 price target.

In the report, Euro Pacific Capital noted, “We are initiating coverage of FX Energy with a SPECULATIVE BUY rating and a $5.50 price target. FXEN is a Salt Lake City, Utah-based E&P that explores for and produces natural gas from conventional drilling prospects in Poland. Nearly all of the company's production and reserves are from exploration discoveries in the Fences Concession in Poland, where the company has registered 9 of 13 discoveries. Additionally, the company has identified about 200 BCF of upside potential from new prospects around existing discoveries. Outside the Fences area, a recent positive production test of the company's Tuchola 3-K well raises the possibility of a new development area in the Edge Concession in Poland. Currently the company produces about 12.4 MMCFPD of production in Poland from 7 wells and a 2P reserve base of 79 BCF. Attractive natural gas price realizations of nearly $7.00/MCF and low operating costs have made discoveries very profitable.”

FX Energy closed on Thursday at $4.25.