Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of FX Energy (NASDAQ: FXEN) jumped 22% today after the independent gas and oil producer reported drilling results.
So what: Productions tests showed an open flow rate for the Tuchola-4K well of 117 million cubic feet per day, compared to a calculated rate of 98 Mmcf/day. The estimated production rate is 24 Mmcf/day and FX Energy owns a 100% working interest in the well.
Now what: Management said the results were well ahead of what it had expected and should goose results when it starts production. The company also said the Edge exploration looks promising, but is cautious given its level of knowledge about the play. I'd like to see shares pullback after the pop before jumping in, but over the long term the strong production rate will be good for the company.
