Message #5 From:
NewsBot Date: August 9, 2006 09:30:00 AM
FXEN News Dutton Associates Announces Investment Opinion: FX Energy Speculative Buy Rating Maintained In Update Coverage By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Aug. 9, 2006--Dutton Associates updates its coverage of FX Energy (Nasdaq:FXEN) reiterating a Speculative Buy rating and a 12 month price target of $9.00. The 11-page report by Dutton senior analyst Les Childress is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
We believe FX Energy has significant growth potential through exposure to additional development and exploration for natural gas in Poland's Permian Basin. FX Energy's large land position in Poland encompasses three major areas totaling 1.7 million acres. Having operated in Poland since 1994, FX Energy has been able to establish a strong working relationship with the Polish Oil and Gas Company (POGC) and secure the POGC as a partner and, as a result FXEN has made spending commitments in Poland entitling it to earned interests in three natural gas fields in areas known as Fences I, II and III. Although FX Energy's shares have been weak lately, we believe an upward bias has begun as global investors seek opportunities spawned by geopolitical events that directly influence natural gas demand throughout Europe and Eastern Europe specifically. Over the next two to three years the real play for investors in FX Energy, in our opinion, is not how quickly they reach production in Poland but the quality and duration of production, which will help quantify exposure to what could be huge amounts of gas. It is possible that the Company could be exposed to as much as 2.4-2.8 trillion cubic feet (Tcf) of gas reserves in Poland. Moreover, a new higher natural gas price plateau in Europe has recently emerged as gas demand, especially in the United Kingdom, accelerated last winter. Recently, Gazprom suggested that prices in Europe could increase again in coming months.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 7/20/2004. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
