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					Conference Call November 9, 2009


Wayne

Good afternoon Ladies and Gentlemen, and welcome to the FX Energy, Inc. Third
Quarter 2009 Financial and Operating Results Conference Call. This conference call
may contain “forward looking statements” (as defined in Section 27A(I)(1) of the
Securities Act of 1933, as amended). These forward-looking statements are based largely
on the Company’s expectations and are subject to a number of risks and uncertainties,
some of which cannot be predicted or quantified and are beyond their control. For a
discussion of additional contingencies and uncertainties to which information respecting
future events is subject, see FX Energy’s SEC reports. At this time I would like to turn
the call over to Clay Newton go ahead sir.

Clay Newton

Thank you, Wayne. And thank you all for joining us today. I’m Clay Newton, VP of
Finance here at FX Energy. Welcome to our third quarter 2009 earnings call.

During this call I‘ll talk about just a few key financial items, as substantial detail is
available in the just filed 10-Q. After that, David Pierce, our CEO, will cover some
operational updates.

Let me start by talking about the most exciting news from the third quarter: the new
production stream from our Roszkow well in the Fences area. Production started at
Roszkow on September 18th, and, with only 13 days of less-than-peak production, we
were able to reverse almost 2 years of steady production declines. The well didn’t reach
its current rate of production until early October, but it now remains steady at 15 million
cubic feet of gas per day, which is about 7.4 million cubic feet per day net to FX. We
expect that 15 million plateau rate to continue now for several years. Our production exit
rate at June 30 was about 4.6 Mmcfed. At the end of September, our exit rate had almost
tripled to 12.2 Mmcfed. That’s 265% of where we were at the beginning of the quarter.

Clearly, production from the Roszkow well represents a step-change for FX. We expect
now to see record production and revenue levels for the next several quarters. At current
production rates, exchange rates, and gas prices, the Roszkow well would throw off
approximately $1.3 million a month in new revenues, which is equal to about $4 million
per quarter, and almost $16 million per year. We look forward to a significant boost in
cash flows available for exploration and development in Poland.

Now, let me address a few other key takeaways for Q3. Gas prices in Poland remain
strong. Despite a 5% reduction in the wholesale gas tariff that took effect on July 1, zloty-
based gas prices are still some 5% higher this year than last. Gas prices in Poland are also
significantly higher than gas prices here in the US on a dollar equivalent basis. For
example, during the month of October, our gas price at Roszkow was $6.00 per mcf or
$7.50 per mmbtu. Our cash flow margin in Poland remains much more attractive than in
the US or most other producing regions, due to the high gas prices and low lifting costs,
along with the country’s low royalty and tax rates.



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Conference Call November 9, 2009



It’s important to remember, when you look at our financial statements, the continuing
impact of currency fluctuations on our US dollar denominated financial results. While
the change in the third quarter wasn’t as dramatic as it was in the second quarter, the
Polish zloty still depreciated quarter-to-quarter by about 34% when you look at third
quarter 2009 vs. 2008. These changes in rates have a direct impact on two significant
areas of our income statement.

First, the exchange rate fluctuations directly impact the amount of revenues we report in
US dollars. During the third quarter of this year, exchange rate differences accounted for
a 25% decrease in reported US dollar denominated Polish revenues compared to the same
quarter of last year.

Second, accounting rules require us to run foreign exchange gains and losses that are
associated with intercompany loans through our income statement. This quarter you will
note a large foreign exchange gain, which is almost entirely intercompany-related. It’s a
non-cash gain that has no impact on our operations or cash flows.

The most important thing to remember about how foreign exchange fluctuations affect
our operations is this: we sell gas in Poland in zlotys; we keep our zlotys in-country, and
use them to pay operating and drilling costs, also in zlotys. While the currency changes
affect our US dollar-denominated financial statements, they have no affect on our Polish
operations.

Lastly, we continue to be vigilant with our cash resources. As we discussed last quarter,
early this year we adopted a plan to match our exploration and capital spending with our
discretionary cash flow and existing cash balances, without going to the market for more
equity. I am happy to report that we are still on plan, and ended the third quarter pretty
much where we expected to be. We are also in discussions with the Royal Bank of
Scotland to significantly increase the size of our credit facility, as well as to extend its
maturity dates.

I’ll be happy to discuss any specific questions you might have when we get to the Q&A
session.

With that background, I’ll now turn the call over to David for some operational updates.


David Pierce

Good afternoon and thanks for joining us.

It is a real pleasure to talk with you today, especially about the impact of Roszkow. We
knew it was coming, we knew how big it would be, but it was terrific to wake up one
September day to see the Company’s production rate more than doubled overnight. The
really great thing is that about a year from now we anticipate a near repeat. When the



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Conference Call November 9, 2009


KSK production stream comes online in about a year it should add another 7 Mmcfg/d,
bringing Company production up to nearly 20 mmcfge/d. KSK, by the way, refers to the
two Kromolice wells and the Sroda-4 well.

On top of that, we recently started work to begin producing the Winna Gora well midway
through the following year. Winna Gora is a standalone well, but we have a number of
new leads nearby and may target some of those in our 2010 drilling program. Winna
Gora production facilities just might allow us to get any future discoveries in the area
onstream a little quicker.

As Clay mentioned, we expect to significantly increase the size, and extend the maturity
date, of our RBS credit facility. That’s a good thing, because I think we’ll use it over the
next couple of years for these new facilities at KSK and Winna Gora.

Clay, said we anticipate record levels of production and revenues over the next several
quarters. He was talking about the predicted impact of the Roszkow production stream.
But if you look at the impact of bringing the KSK production stream online a year from
now, and Winna Gora a few quarters later, the outlook is for record production and
revenues for the next two or three years. And that’s before we consider the possibility of
new discoveries that we might make during that period. The outlook for significant
growth in production and revenues is very positive over the next couple of years.

And that’s good – because we’re going to need those revenues. Just as the expected credit
facility increase will fund new production facilities, so the increased production revenues
will help us drill new wells and acquire new seismic to find more new places to drill.

Right now we are looking pretty hard at potential drillsites on 3-D seismic in the area east
of Winna Gora. We are wrapping up the final processing and interpretation on a handful
of leads in this area, and we are working with our partner to prioritize targets and set
drilling plans. We also have 3-D leads in the KSK area, and a 2-D lead on trend with the
Zaniemysl and Roszkow fields. In all, we have identified perhaps a dozen interesting
leads in the Fences area. And with our substantially increased production rate we finally
have the revenues we need to support a sustained drilling program. We anticipate being
able to talk about our drilling and seismic plans in the Fences area in the next month or
two, after we finalize things with our partner.

Meanwhile, I can say that we anticipate more than $20 million in capital expenditures for
the Fences area in 2010. This would include drilling, seismic and new production
facilities. We really can’t say more than that until we conclude discussions with our
partner.

Now, we expect to fund our capital budget with a combination of increased revenues and
an increase in our credit facility with RBS. As Clay mentioned, we anticipate nearly $16
million next year in new revenues (assuming constant production rates, prices and
exchange rates). So we are pushing for a sustained drilling program in the Fences area.
We’ll get back to you with details as soon as we have them settled.



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Conference Call November 9, 2009



Outside the Fences area we still hold nearly 4 million acres where we are looking to
industry to fund the bulk of exploration costs near term. Since our last call we drilled and
plugged the Ostrowiecz well in the Northwest Block. This was a $10 million project
funded entirely by an industry partner. It was a disappointment, of course, to have to plug
the well, but that is simply one of the unavoidable aspects of high risk / high potential
exploration.

Meanwhile, we are continuing to market our very attractive prospects in the Northwest
Block and in our other exploration concession areas. As we have noted throughout this
year, we are observing a steady increase in industry interest in Poland. Exxon/Mobil,
Gazprom, Conoco/Phillips and Marathon all have taken concessions in Poland in the last
year. Poland is getting on more radar screens and more international oil and gas
companies are actually looking at putting their people in country. With the quality of our
land holdings and the potential of our leads and prospects, we think the outlook for
exploration farmouts is increasingly positive.

In closing, I’d like to remind you that our proved reserves are $3.25 per share and our
P50 or most likely reserves are $5.25 per share. These figures are as of the end of last
year, and we anticipate significant increases to both numbers when we release our reserve
figures in a couple of months. That makes FX Energy shares a great buying opportunity
at a price of about $2.60 today.

That covers our planned remarks. Clay and I will be happy to field questions for a few
minutes.




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