907649--3/13/2007--FX_ENERGY_INC

related topics
{gas, price, oil}
{regulation, change, law}
{operation, international, foreign}
{stock, price, operating}
{interest, director, officer}
{acquisition, growth, future}
{provision, law, control}
{cost, regulation, environmental}
{personnel, key, retain}
{loss, insurance, financial}
{stock, price, share}
Risks Relating to our Business Our success depends largely on our discovery of economic quantities of oil or gas in Poland. We have limited control over our exploration and development activities in Poland. We cannot assure the exploration models we are using in Poland will lead to finding oil or gas in Poland. We cannot accurately predict the size of exploration targets or foresee all related risks. We have had limited exploratory success in Poland. We may not achieve the results anticipated in placing our current or future discoveries into production. Privatization/Nationalization of POGC could affect our relationship and future opportunities in Poland. We have a history of operating losses and may require additional capital in the future to fund our operations. The loss of key personnel could have an adverse impact on our operations. The price we receive for gas we sell will likely be lower than free market gas prices in western Europe. Substantially all of the oil and gas currently produced in Poland is sold to a single customer or its affiliates. Oil and gas price decreases and volatility could adversely affect our operations and our ability to obtain financing. Our industry is subject to numerous operating risks. Insurance may not be adequate to protect us against all these risks. Risks Relating to Conducting Business in Poland Polish laws, regulations and policies may be changed in ways that could adversely impact our business. Poland has a developing regulatory regime, regulatory policies and interpretations. Our oil and gas operations are subject to changing environmental laws and regulations that could have a negative impact on our operations. Certain risks of loss arise from our need to conduct transactions in foreign currency. Risks Related to an Investment in our Common Stock Our stockholder rights plan and bylaws discourage unsolicited takeover proposals and could prevent our stockholders from realizing a premium on our common stock. Our common stock price has been and may continue to be extremely volatile.

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