| UNITED      STATES SECURITIES AND EXCHANGE COMMISSION                                          |
|------------------------------------------------------------------------------------------------|
| Washington,      D.C.  20549                                                         |
|                                                                                           |
| FORM      10-K                                                                                 |
|                                                                                           |
| ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                                                                                           |
| For      the fiscal year ended December 31, 2009                                               |
|                                                                                           |
| Commission      File Number:  000-25386                                              |
|                                                                                           |
| FX      ENERGY, INC.                                                                           |
| (Exact      name of registrant as specified in its charter)                                    |
|                                                                                           |   |
| Nevada                                                                                         | 87-0504461 |
| (State      or other jurisdiction of incorporation or organization)                            | (I.R.S.      Employer Identification No.) |
|                                                                                           |   |
| 3006      Highland Drive, Suite 206, Salt Lake City, Utah                                      | 84106 |
| (Address      of principal executive offices)                                                  | (Zip      Code) |
|                                                                                           |
| Registrant’s      telephone number, including area code:                                 | Telephone      (801) 486-5555 |
|                                                                                           | Facsimile      (801) 486-5575 |
|                                                                                           |   |
| Securities      registered pursuant to Section 12(b) of the Act:                               |
| Title      of each class                                                                       | Name      of each exchange on which registered |
| Common      Stock, Par Value $0.001                                                            | NASDAQ      Global Market |
|                                                                                           |
| Securities      registered pursuant to Section 12(g) of the Act:                               |
| None                                                                                           |
| (Title      of Class)                                                                          |

| Large      accelerated filer o | Accelerated      filer x         |
|-------------------------------------|---------------------------------------|
| Non-accelerated      filer o   | Smaller      reporting company o |

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|                                                       |
|------------------------------------------------------------|
| FX      ENERGY, INC.                                       |
| Form      10-K for the fiscal year ended December 31, 2009 |
|                                                       |

| Item   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Page   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   | Part      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| --     |   | Special      Note on Forward-Looking      Statements                                                                                                                                               | 3      |
| 1      |   | Business                                                                                                                                                                                           | 5      |
| 1A     |   | Risk      Factors                                                                                                                                                                                  | 11     |
| 1B     |   | Unresolved      Staff      Comments                                                                                                                                                                | 20     |
| 2      |   | Properties                                                                                                                                                                                         | 20     |
| 3      |   | Legal      Proceedings                                                                                                                                                                             | 32     |
| 4      |   | [RESERVED]                                                                                                                                                                                         | 32     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | Part      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| 5      |   | Market      for Registrant’s Common Equity, Related StockholderMatters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|   |   | and      Issuer Purchases of Equity      Securities                                                                                                                                                                    | 33     |
| 6      |   | Selected      Financial      Data                                                                                                                                                                  | 34     |
| 7      |   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 36     |
| 7A     |   | Quantitative      and Qualitative Disclosures about Market      Risk                                                                                                                               | 49     |
| 8      |   | Financial      Statements and Supplementary      Data                                                                                                                                              | 50     |
| 9      |   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 50     |
| 9A     |   | Controls      and      Procedures                                                                                                                                                                  | 51     |
| 9B     |   | Other      Information                                                                                                                                                                             | 51     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | Part      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| 10     |   | Directors,      Executive Officers and Corporate      Governance                                                                                                                                   | 51     |
| 11     |   | Executive      Compensation                                                                                                                                                                        | 52     |
| 12     |   | Security      Ownership of Certain Beneficial Owners and Management and      Related                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | Stockholder      Matters                                                                                                                                                                                               | 52     |
| 13     |   | Certain      Relationships and Related Transactions, and Director      Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 52     |
| 14     |   | Principal      Accounting Fees and      Services                                                                                                                                                   | 52     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | Part      IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| 15     |   | Exhibits,      Financial Statement      Schedules                                                                                                                                                  | 53     |
| --     |   | Signatures                                                                                                                                                                                         | 58     |
| --     |   | Management’s      Report on Internal Control over Financial      Reporting                                                                                                                   | F-1    |
| --     |   | Report      of Independent Registered Public Accounting      Firm                                                                                                                                  | F-2    |

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| ·   | whether      we will be able to discover and produce gas or oil in commercial      quantities from any explorationprospect; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | whether      we will be able to borrow funds to develop our oil and gas discoveries in      Poland from the Royal Bank of Scotland, our current principal lender, or      from any other commercial lender, even if we increase substantially the      quantity and value of our reserves that we may be willing to encumber to      secure repayment of suchborrowings; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | whether      the quantities of gas or oil we discover will be as large as our initial      estimate of an exploration target area’s gross unrisked      potential; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | whether      the estimated proved quantities of oil and gas reserves that we report      using deterministic methods currently mandated by the Securities and      Exchange Commission will be as large as the estimated quantities of proved      or probable oil and gas reserves that we otherwise publicly announce may      be present using probabilisticmethods; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | whether      actual exploration risks, schedules, and sequences will be consistent with      our plans and forecasts; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | the      future results of drilling or producing individual wells and other      exploration and developmentactivities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | the      prices at which we may be able to sell gas or  oil; |
|--------------------|--------------------------------------------------------------|

| ·   | foreign      currency exchange-ratefluctuations; |
|--------------------|--------------------------------------------------|

| ·   | the      financial and operating viability and stability of the Polish Oil and Gas      Company, or POGC, and other third parties with which we conduct business      and on which we rely to supply goods and services and to purchase our oil      and gas production; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exploration      and development priorities and the financial and technical resources of      POGC, our principal joint venture and strategic partner in Poland, PL      Energia S.A., another partner in Poland, or other future      partners; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties      inherent in estimating quantities of proved reserves and actual production      rates and associated costs; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      cost and availability of additional capital that we may require and      possible related restrictions on our future operating or financing      flexibility; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | our      future ability to attract industry or financial participants to share the      costs of exploration, exploitation, development, and acquisition      activities; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties      of certain terms to be determined in the future relating to our oil and      gas interests, including exploitation fees, royalty rates, and other      matters; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties      regarding future political, economic, regulatory, fiscal, taxation, and      other policies in Poland and the European Union;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other      factors that are not listed above. |
|--------------------|-----------------------------------------------|

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|                  |
|-----------------------|
| ITEM      1. BUSINESS |
|                  |

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|                       |
|----------------------------|
| ITEM      1A. RISK FACTORS |
|                       |

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| ·   | the      geological, geophysical, and engineering characteristics of the      underground reservoir; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | known      production from other properties that we believe are an analogue to our      own wells; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | the      assumed effects of regulatory requirements and government      payments; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | the      costs of the construction of production facilities and pipeline      connections and the timing of completing those  facilities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | production      and other operating policies and practices of POGC, the operator of most      of our productive wells; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | the      effect of certain terms to be determined in the future, including gas and      oil exploitation fees, royalty rates, and similar items;    and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | market      prices and demand for the oil and gas we  produce. |
|--------------------|----------------------------------------------------------------|

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| ·   | the      market and price structure in localmarkets; |
|--------------------|------------------------------------------------------|

| ·   | changes      in the supply of and demand for oil andgas; |
|--------------------|----------------------------------------------------------|

| ·   | market      uncertainty; |
|--------------------|--------------------------|

| ·   | the      impact of potential climate change on oil and gas demand and      prices; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | political      conditions in international oil and gas producing  regions; |
|--------------------|----------------------------------------------------------------------------|

| ·   | the      extent of production and importation of oil and gas into existing or      potential markets; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | the      level of consumer demand; |
|--------------------|------------------------------------|

| ·   | weather      conditions affecting production, transportation, and      consumption; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | the      competitive position of gas or oil as a source of energy, as compared with      coal, nuclear energy, hydroelectric power, and other energy      sources; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      availability, proximity, and capacity of gathering systems, pipelines, and      processing facilities; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | the      refining and processing capacity of prospective gas or oil      purchasers; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | the      effect of governmental regulation on the production, transportation, and      sale of oil and gas; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | other      factors beyond our control. |
|--------------------|----------------------------------------|

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| ·   | possible      changes in government personnel, the development of new administrative      policies, and practices and political conditions in Poland that may affect      the administration of agreements with governmental agencies or      enterprises; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | possible      changes to the laws, regulations, and policies applicable to us and our      partners or the oil and gas industry in Poland in  general; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties      as to whether the laws and regulations will be applicable in any      particular circumstance; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties      as to whether we will be able to enforce our rights in    Poland; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | uncertainty      as to whether we will be able to demonstrate, to the satisfaction of the      Polish authorities, our and POGC’s compliance with governmental      requirements respecting exploration expenditures, results of exploration,      environmental protection matters, and other  factors; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      inability to recover previous payments to the Polish government made under      the exploration rights or any other costs incurred respecting those rights      if we were to lose or cancel our exploration and exploitation rights at      any time; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | political      instability and possible changes ingovernment; |
|--------------------|---------------------------------------------------------------|

| ·   | export      and transportation tariffs; |
|--------------------|-----------------------------------------|

| ·   | local      and national tax requirements; |
|--------------------|-------------------------------------------|

| ·   | expropriation      or nationalization of private enterprises and other risks arising out of      foreign government sovereignty over our acreage in Poland;    and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | possible      significant delays in obtaining opinions of local authorities or      satisfying other governmental requirements in connection with a grant of      permits to conduct exploration and production  activities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | provisions      that members of the board of directors are elected and retire in rotation;      and |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | the      ability of the board of directors to designate the terms of, and to issue      new series of, preferred shares. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

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| ·   | the      outcome of individual wells or the timing of exploration efforts in      Poland; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the      potential sale by us of newly issued common stock to raise      capital; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | price      and volume fluctuations in the general securities markets that are      unrelated to our results ofoperations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | the      investment community’s view of companies with assets and operations      outside the United States in general and in Poland in      particular; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | actions      or announcements by POGC that may affectus; |
|--------------------|----------------------------------------------------------|

| ·   | turmoil      in the financial sector that may impact our revolving credit      facility; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | prevailing      world prices for oil and gas; |
|--------------------|-----------------------------------------------|

| ·   | the      potential of our current and planned activities in Poland;    and |
|--------------------|----------------------------------------------------------------------------|

| ·   | changes      in stock market analysts’ recommendations regarding us, other oil and gas      companies, or the oil and gas industry in  general. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                    |
|-----------------------------------------|
| ITEM      1B. UNRESOLVED STAFF COMMENTS |
|                                    |

|                    |
|-------------------------|
| ITEM      2. PROPERTIES |
|                    |

| ·   | Commodity Prices – Economic      producibility of reserves and discounted cash flows are now based on the      use of unweighted, 12-month first day of the month historical average      prices adjusted for basis and quality differentials, rather than year-end      prices. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure of Unproved      Reserves –      Probable and possible reserves may be disclosed separately on a voluntary      basis. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Proved Undeveloped Reserves      Guidelines      – Reserves may be classified as proved undeveloped if there is a      high degree of confidence that the quantities will be recovered and they      are scheduled to be drilled within the next five years, unless the      specific circumstances justify a longertime. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Third-Party Reserves      Preparation – If a company represents that its estimates of      reserves are prepared or audited by a third party, the company must file a      report of the third party as an exhibit to the relevant registration      statement or report. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Use of Probabilistic      Methods–      Reserves may be estimated using probabilistic methods in which there is at      least a 90% probability of recovery of “proved” reserves, at least a 50%      probability of recovery of “probable” reserves, and at least a 10%      probability of recovery of “possible”reserves. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure by Geographic      Area–      Reserves in foreign countries or continents must be presented separately      if they represent more than 15% of total oil and gas proved      reserves. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | conversion      of approximately 14.6 Bcf of existing proved undeveloped reserves into      proved developed reserves upon the commencement of production at our      Roszkow well; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | new      proved undeveloped reserves of approximately 4.6 Bcf associated with the      Kromolice-2 well that we completed in early  2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Item      7, Management’s Discussion and Analysis of Financial Condition and Results      of Operations – Proved Reserves for a discussion of changes in proved      reserves; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Item      7, Management’s Discussion and Analysis of Financial Condition and Results      of Operations – Critical Accounting Policies and Estimates – Oil and Gas      Reserves for further discussion of our reserves estimation      process; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Item      8, Financial Statements and Supplementary Data – Supplementary Oil and Gas      Information (Unaudited) for additional information regarding estimates of      crude oil and natural gas reserves, including estimates of proved, proved      developed, and proved undeveloped reserves, the standardized measure of      discounted future net cash flows, and the changes in the standardized      measure of discounted future net cashflows. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | United      States |   | Poland |   | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | MBbls              |   | MMcf   |   | MMcfe  |   |
| Proved      developed      reserves                                                                         | 463                |   | 20,409 |   | 23,187 |   |
| Proved      undeveloped      reserves                                                                       | --                 |   | 27,259 |   | 27,259 |   |
| Total      proved      reserves                                                                             | 463                |   | 47,668 |   | 50,446 |   |
| Probable      reserves                                                                                      | --                 |   | 42,265 |   | 42,265 |   |
| Total      proved plus probable      reserves                                                                              | 463                |   | 89,933 |   | 92,711 |   |

|                                                                                                                                                                                                                                                                                                                    | Total      Net           |              | PV-10                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------|----------------------------------|
|                                                                                                                                                                                                                                                                                                                    | Reserves                 |              | Value                            |
|                                                                                                                                                                                                                                                                                                                    | (MMcfe)                  | (In    thousands) |
|                                                                                                                                                                                                                                                                                                                    |                     |              |                             |
| Proved                                                                  | 50,446    |              | $      145,823    |
| Probable                                                                | 42,265    |              | 68,283            |
| Total      Proved and      Probable                                               | 92,711    |              | $      214,107    |

|                                                                                                                                                                                                                                                                                                               | Years      Ended December 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                                                                                                                                                                                                                                                                                               | 2009                          |   | 2008 |   | 2007 |
|                                                                                                                                                                                                                                                                                                               | Gross                         |   | Net |   | Gross |   | Net |   | Gross |   | Net |
| Exploratory      productive wells:                                                                                                                                                                                                                                                                                 |                          |   |   |   |   |   |   |   |   |   |   |
| Poland                                                             | 1.0                           |   | 0.5 |   | 1.0 |   | 0.5 |   | 2.0 |   | 1.0 |
| United      States                                                 | --                            |   | -- |   | -- |   | -- |   | -- |   | -- |
| Total                                                                             | 1.0                           |   | 0.5 |   | 1.0 |   | 0.5 |   | 2.0 |   | 1.0 |
|                                                                                                                                                                                                                                                                                                               |                          |   |   |   |   |   |   |   |   |   |   |
| Exploratory      dry holes:                                                                                                                                                                                                                                                                                        |                          |   |   |   |   |   |   |   |   |   |   |
| Poland                                                             | --                            |   | -- |   | 2.0 |   | 1.0 |   | -- |   | -- |
| United      States                                                 | 1.0                           |   | 0.5 |   | 3.0 |   | 1.5 |   | -- |   | -- |
| Total                                                                             | 1.0                           |   | 0.5 |   | 5.0 |   | 2.5 |   | -- |   | -- |
|                                                                                                                                                                                                                                                                                                               |                          |   |   |   |   |   |   |   |   |   |   |
| Total      wells      drilled                                                               | 2.0                           |   | 1.0 |   | 6.0 |   | 3.0 |   | 2.0 |   | 1.0 |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Number      of Wells |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Gross                |   | Net |
| Well      count:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                 |   |   |
| Poland(1)                                                                                                            | 3.0                  |   | 1.2 |
| United      States(2)                                                                                                | 129.0                |   | 122.3 |
| Total                                                                                                                               | 132.0                |   | 123.5 |

| (1) | As      of December 31, 2009, we had four wells in Poland awaiting the      construction of productionfacilities. |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (2) | All      of our producing United States wells are oil wells.  We have no      gas production in the UnitedStates. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                              | Developed |   | Undeveloped        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                              | Gross     |   | Net                |   | Gross |   | Net |
|                                                                                                                                                                                                                                                                                                                                                              |      |   |               |   |   |   |   |
| Poland:      (1)                                                                                                                                                                                                                                                                                                                                                  |      |   |               |   |   |   |   |
| Fences      project      area                                                            | 350       |   | 171      |   | 852,000 |   | 406,000 |
| Block      255 project      area                                                         | 543       |   | 441      |   | 236,000 |   | 194,000 |
| Northwest      project      area                                                         | --        |   | --       |   | 943,000 |   | 943,000 |
| Kutno      project      area                                                             | --        |   | --       |   | 706,000 |   | 706,000 |
| Warsaw      South project      area                                                      |      |   |               |   | 638,000 |   | 638,000 |
| Block      287 project      area                                                         | --        |   | --       |   | 13,000 |   | 13,000 |
| Edge      project      area                                                              | --        |   | --       |   | 881,000 |   | 881,000 |
| Block      246 project      area                                                         |      |   |               |   | 241,000 |   | 241,000 |
| Block      229 project      area                                                         |      |   |               |   | 233,000 |   | 233,000 |
| Total      Polish      acreage                                                                          | 893       |   | 612      |   | 4,743,000 |   | 4,255,000 |
|                                                                                                                                                                                                                                                                                                                                                              |      |   |               |   |   |   |   |
| United      States:                                                                                                                                                                                                                                                                                                                                               |      |   |               |   |   |   |   |
| Montana                                                                                  | 10,732    |   | 10,418   |   | 4,510 |   | 4,417 |
| Nevada                                                                                   | 400       |   | 128      |   | 9,332 |   | 6,351 |
| Total                                                                                                   | 11,132    |   | 10,546   |   | 13,842 |   | 10,768 |
|                                                                                                                                                                                                                                                                                                                                                              |      |   |               |   |   |   |   |
| Total      Acreage                                                                                                | 12,025    |   | 11,158   |   | 4,756,842 |   | 4,265,768 |

| (1) | All      gross and net undeveloped Polish acreage is rounded to the nearest 1,000      acres. |
|-----|-----------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                        | Average      Daily   |   | Average |   | Average          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--------|---------|--------|------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                        | Production (Mcfe)(1) |   | Working |   | Net      Revenue |
|                                                                                                                                                                                                                                                                                                                                                                                                        | Gross                |   | Net     |   | Interest         |   | Interest |
| Fences      project      area                                                              | 25,410               |   | 9,974   |   | 41%              |   | 41% |
| Grabowka                                                                                   | 488                  |   | 488     |   | 100%             |   | 100% |
| Block      255/Wilga                                                                       | 238                  |   | 196     |   | 82%              |   | 82% |
| Total                                                                                                                                                                                                                                                                                                                                                                                                       | 26,136               |   | 10,658  |   |             |   |   |

|   | _______________ |
|--------|-----------------|

| (1) | Average      daily net production amounts shown are calculated based on days of actual      production. |
|-----|---------------------------------------------------------------------------------------------------------|

|                                                  |   | 2009   |   | 2008    |   | 2007   |
|-------------------------------------------------------|--------|--------|--------|---------|--------|--------|
|                                                  |   |   |   |    |   |   |
| Average      daily net gas production (Mcf)(1)   |   | 10,644 |   | 3,428   |   | 5,039  |
| Average      sales price per Mcf                      |   | $5.01  |   | $5.92   |   | $4.95  |
|                                                  |   |   |   |    |   |   |
| Average      daily net oil production (Bbls)(1)  |   | 2      |   | 10      |   | 69     |
| Average      sales price per Bbl                      |   | $54.96 |   | $107.68 |   | $58.68 |
|                                                  |   |   |   |    |   |   |
| Average      daily net Mcfe production(1)        |   | 10,658 |   | 3,488   |   | 5,453  |
| Average      production costs per Mcfe(2)        |   | $0.51  |   | $0.70   |   | $0.58  |

| (1) | Average      daily net production amounts shown are calculated based on days of actual      production. |
|-----|---------------------------------------------------------------------------------------------------------|

| (2) | Production      costs include lifting costs (electricity, fuel, water, disposal, repairs,      maintenance, transportation, and similar items) and contract operator      fees.  Production costs do not include such items as general and      administrative costs; depreciation, depletion and amortization; or Polish      income taxes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                          | Average      Daily     |   | Average |   | Average          |
|-----------------------------------------------|------------------------|--------|---------|--------|------------------|
|                                          | Production      (Bbls) |   | Working |   | Net      Revenue |
|                                          | Gross                  |   | Net     |   | Interest         |   | Interest |
| Montana                                       | 191                    |   | 163     |   | 99%              |   | 85% |
| Nevada                                        | 49                     |   | 12      |   | 31%              |   | 29% |
| Total      United States producing properties | 240                    |   | 175     |   |             |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Years      Ended December 31, |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2009                          |   | 2008 |   | 2007 |
| United      States producing property data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                          |   |   |   |   |
| Average      daily net oil production      (Bbls)                                                                                | 175                           |   | 181 |   | 192 |
| Average      sales price per      Bbl                                                                                            | $51.92                        |   | $86.91 |   | $61.75 |
| Average      production costs per Bbl(1)                                                                                         | $39.62                        |   | $38.89 |   | $34.12 |

| (1) | Production      costs include lifting costs (electricity, fuel, water, disposal, repairs,      maintenance, pumper, transportation, and similar items) and production      taxes.  Production costs do not include such items as general      and administrative costs; depreciation, depletion and amortization; state      income taxes, or federal incometaxes. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|                           |
|--------------------------------|
| ITEM      3. LEGAL PROCEEDINGS |
|                           |

|                    |
|-------------------------|
| ITEM      4. [RESERVED] |
|                    |

----

|                                                      |
|-----------------------------------------------------------|
| ITEM      5. MARKET FOR REGISTRANT’S COMMON EQUITY, |
| RELATED      STOCKHOLDER MATTERS AND                      |
| ISSUER      PURCHASES OF EQUITY SECURITIES                |
|                                                      |

|                                        | Low               |   | High              |
|---------------------------------------------|-------------------|--------|-------------------|
| 2010:                                       |              |   |              |
| First      Quarter (through March 15, 2010) | $  2.85 |   | $  3.53 |
|                                        |              |   |              |
| 2009:                                       |              |   |              |
| Fourth      Quarter                         | 2.39              |   | 3.28              |
| Third      Quarter                          | 3.05              |   | 4.71              |
| Second      Quarter                         | 2.91              |   | 4.56              |
| First      Quarter                          | 2.13              |   | 3.54              |
|                                        |              |   |              |
| 2008:                                       |              |   |              |
| Fourth      Quarter                         | 2.05              |   | 7.20              |
| Third      Quarter                          | 4.95              |   | 8.66              |
| Second      Quarter                         | 4.44              |   | 5.81              |
| First      Quarter                          | 3.98              |   | 5.94              |

----

|                                 |
|--------------------------------------|
| ITEM      6. SELECTED FINANCIAL DATA |
|                                 |

|                                                                                                                                                                                                                                                                                                                                                      | Years      Ended December 31,                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                      | 2009                                          |   | 2008 |   | 2007 |   | 2006 |   | 2005 |
|                                                                                                                                                                                                                                                                                                                                                      | (In      thousands, except per share amounts) |   |
| Statement      of Operations Data:                                                                                                                                                                                                                                                                                                                        |                                          |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                 |                                          |   |   |   |   |   |   |   |   |
| Oil      and gas      sales                                                           | $   12,772                |   | $   13,494  |   | $   14,903  |   | $    6,533  |   | $    3,805  |
| Oilfield      services                                                                | 1,892                                    |   | 4,347  |   | 3,093  |   | 1,696  |   | 2,132  |
| Total      revenues                                                                        | 14,664                                   |   | 17,841  |   | 17,996  |   |  8,229  |   | 5,937  |
| Operating      costs and expenses:                                                                                                                                                                                                                                                                                                                        |                                          |   |   |   |   |   |   |   |   |
| Lease      operating expenses (1)                                                     | 3,478                                    |   | 3,441  |   | 3,538  |   | 2,647  |   | 2,462  |
| Exploration      costs (2)                                                            | 4,829                                    |   | 15,389  |   | 10,624  |   |  5,608  |   | 8,369  |
| Recovery      of previously expensed                                                                                                                                                                                                                                                                                                                      |                                          |   |   |   |   |   |   |   |   |
| Input      VAT                                                                             | --                                       |   | --  |   | --  |   | --  |   | (2,121) |
| Impairments      / ARO revisions (3)                                                                                                                                                                                                                                                                                                                      | 1,3335                                   |   | 14,746  |   | 2,299  |   | 3,583  |   | --  |
| Oilfield      services      costs                                                     | 1,412                                    |   | 2,751  |   | 1,998  |   | 1,245  |   | 1,689  |
| Depreciation,      depletion and                                                                                                                                                                                                                                                                                                                          |                                          |   |   |   |   |   |   |   |   |
| amortization                                                                               | 1,602                                    |   | 1,720  |   | 2,064  |   | 1,290  |   | 903  |
| Accretion      expense                                                                | 41                                       |   | 84  |   | 78  |   | 53  |   | 45  |
| Amortization      of deferred                                                                                                                                                                                                                                                                                                                             |                                          |   |   |   |   |   |   |   |   |
| compensation                                                                               | 1,693                                    |   | 2,367  |   | 2,604  |   | 2,759  |   | 125  |
| Stock      compensation                                                               | --                                       |   | --  |   | --  |   | --  |   | 76  |
| Bad      debt      expense                                                            | --                                       |   | 460  |   | --  |   | --  |   | --  |
| General      and administrative (G&A)                                                                                                                                                                                                                                                                                                                 | 7,257                                    |   | 7,030  |   | 7,061  |   | 5,728  |   | 6,420  |
| Total      operating costs and expenses                                                                                                                                                                                                                                                                                                                   | 21,647                                   |   | 47,988  |   | 30,266  |   | 22,913  |   | 17,968  |
|                                                                                                                                                                                                                                                                                                                                                      |                                          |   |   |   |   |   |   |   |   |
| Operating      loss                                                              | (6,983)                                       |   | (30,147) |   | (12,270) |   | (14,684) |   | (12,031) |
|                                                                                                                                                                                                                                                                                                                                                      |                                          |   |   |   |   |   |   |   |   |
| Other      income (expense):                                                                                                                                                                                                                                                                                                                              |                                          |   |   |   |   |   |   |   |   |
| Interest      and other income                                                                                                                                                                                                                                                                                                                            | 54                                       |   | 394  |   | 818  |   | 795  |   | 780  |
| Foreign      exchange gain (loss)                                                                                                                                                                                                                                                                                                                    | 7,053                                    |   | (24,279) |   | 146  |   | 122  |   | (172) |
| Interest      expense                                                                 | (654)                                         |   | (672) |   | (385) |   | --  |   | --  |
| Total      other income      (expense)                                                               | 6,453                                    |   | (24,557) |   | 579  |   | 917  |   | 608  |
|                                                                                                                                                                                                                                                                                                                                                      |                                          |   |   |   |   |   |   |   |   |
| Net      loss                                                                    | $      (530)    |   | $  (54,704) |   | $  (11,691) |   | $  (13,767) |   | $  (11,423) |

----

|                                                                                                                                                                                                                                                                                                                                                    | Years      Ended December 31,                 |   |                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|--------|---------------------------|
|                                                                                                                                                                                                                                                                                                                                                    | 2009                                          |   | 2008                      |   | 2007 |   | 2006 |   | 2005 |   |   |
|                                                                                                                                                                                                                                                                                                                                                    | (In      thousands, except per share amounts) |   |
|                                                                                                                                                                                                                                                                                                                                                    |                                          |   |
| Basic      and diluted net loss                                                                                                                                                                                                                                                                                                                         |                                          |   |                      |   |   |   |   |   |   |
| per      common      share                                                               | $  (0.01)                           |   | $   (1.35) |   | $   (0.32) |   | $   (0.39) |   | $   (0.33) |
|                                                                                                                                                                                                                                                                                                                                                    |                                          |   |                      |   |   |   |   |   |   |
| Basic      and diluted weighted average                                                                                                                                                                                                                                                                                                                 |                                          |   |                      |   |   |   |   |   |   |
| shares      outstanding                                                                  | 42,529                                   |   | 40,420               |   | 36,694  |   | 35,163  |   | 34,733  |
|                                                                                                                                                                                                                                                                                                                                                    |                                          |   |                      |   |   |   |   |   |   |
| Cash      Flow Statement Data:                                                                                                                                                                                                                                                                                                                          |                                          |   |                      |   |   |   |   |   |   |
| Net      cash used in operating activities                                                                                                                                                                                                                                                                                                              | $      (5,829)                                |   | $(14,248)                 |   | $      (1,581) |   | $      (5,303) |   | $(10,105) |
| Net      cash (used in) provided by                                                                                                                                                                                                                                                                                                                     |                                          |   |                      |   |   |   |   |   |   |
| investing      activities                                                                     | (3,999)                                       |   | (11,772)                  |   | (13,152) |   | 8,135  |   | 4,656  |
| Net      cash (used in) provided by                                                                                                                                                                                                                                                                                                                     |                                          |   |                      |   |   |   |   |   |   |
| financing      activities                                                                     | (2,676)                                       |   | 40,121               |   | 14,351  |   | (578) |   | 4,055  |
|                                                                                                                                                                                                                                                                                                                                                    |                                          |   |                      |   |   |   |   |   |   |
| Balance      Sheet Data:                                                                                                                                                                                                                                                                                                                                |                                          |   |                      |   |   |   |   |   |   |
| Working      capital                                                                | $  3,452                       |   | $      13,965        |   | $      15,374  |   | $      11,967  |   | $      27,715  |
| Total      assets                                                                   | 42,070                                   |   | 54,802               |   | 46,369  |   | 39,167  |   | 48,271  |
| Long-term      debt                                                                 | 25,000                                   |   | 25,000               |   | --  |   | --  |   | --  |
| Stockholders’      equity                                                     | 10,745                                   |   | 15,154               |   | 37,542  |   | 31,965  |   | 42,280  |

| (1) | Includes      lease operating expenses and productiontaxes. |
|-----|-------------------------------------------------------------|

| (2) | Includes      geophysical and geological costs, exploratory dry hole costs, and      nonproducing leasehold impairments. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      proved and unproved property write-downs relating to our properties in the      United States and Poland and revisions to our asset retirement      obligations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                 |
|----------------------------------------------------------------------|
| ITEM      7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL |
| CONDITION      AND RESULTS OF OPERATIONS                             |
|                                                                 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2009                |   | 2008     |   | Change |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (In      thousands) |   |
| Proved Reserve      Volumes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                |   |
| Gas      Reserves      (Mcf)                                                                              | 47,668              |   | 45,312   |   | +5%    |
| Oil      Reserves      (Bbls)                                                                             | 463                 |   | 92       |   | +403%  |
| Total      Reserves      (Mcfe)                                                                           | 50,446              |   | 45,864   |   | +10%   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                |   |     |   |   |
| Proved      Reserve Values:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                |   |     |   |   |
| Reserves      PV-10      Value                                                                            | $145,823            |   | $117,568 |   | +24%   |

----

| ·   | the      discovery of commercial gas reserves at the Kromolice-2    well; |
|--------------------|---------------------------------------------------------------------------|

| ·   | the      completion of production facilities and the commencement of production at      our Roszkow well, which is currently producing at a rate of 14.5 MMcfd      (7.1 MMcfd net to us), a rate that we expect to be constant for at least      the next three years; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      sixth consecutive year of proved reserves value  growth; |
|--------------------|-------------------------------------------------------------------|

| ·   | record      fourth quarter 2009 production and year-end production    rates; |
|--------------------|------------------------------------------------------------------------------|

| ·   | initial      progress on the design of our KSK production facilities, which we expect      to increase our daily production by approximately 6.9 MMcfd day when      production commences, scheduled for late2010; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approvals      to begin work on our Winna Gora production facility, scheduled for      completion during 2011; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | the      completion of a new 3-D seismic project in our core Fences      area; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | the      identification of new drill sites in our core Fences  area; |
|--------------------|----------------------------------------------------------------------|

| ·   | the      design of a development plan at our Zakowo project in Block      246; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | a      net operating loss of $7.0 million, compared with a net operating loss of      $30.1 million for 2008; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | net      cash used in operations of $5.8 million, compared to $14.2 million for      2008. |
|--------------------|--------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2009                |   | 2008          |   | Change |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|---------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (In      thousands) |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                |   |
| Oil      & Gas      Sales                                                                                    | $      12,772       |   | $      13,494 |   | -5%    |
| Total      Revenues                                                                                              | $      14,664       |   | $      17,841 |   | -18%   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |   |          |   |   |
| Production:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                |   |          |   |   |
| Gas      Production      (Mcf)                                                                                   | 1,882               |   | 1,251         |   | +50%   |
| Oil      Production      (Bbls)                                                                                  | 64                  |   | 69            |   | -7%    |
| Total      Production      (Mcfe)                                                                                | 2,266               |   | 1,671         |   | +36%   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |   |          |   |   |
| Pricing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |          |   |   |
| Average      Gas Prices (per      Mcf)                                                                           | $5.01               |   | $5.92         |   | -15%   |
| Average      Oil Prices (per      Bbl)                                                                           | $52.03              |   | $88.01        |   | -41%   |

|                                                                                                                                                                                                                                                                                                                            | Reportable      Segments          |                   |               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|------------------------|--------------------|
|                                                                                                                                                                                                                                                                                                                            |                              | Oilfield      Services |               |   |
|                                                                                                                                                                                                                                                                                                                            | Exploration      & Production |                   |               |
|                                                                                                                                                                                                                                                                                                                            | Poland                            | U.S.                   |               | Non-Segmented | Total |
| Year      ended December 31, 2009:                                                                                                                                                                                                                                                                                              |                              |                   |               |   |   |
| Revenues                                                                   | $  9,459           | $      3,313      | $      1,892  | $         --  | $  14,664  |
| Net      income (loss)(1)                                                  | 1,141                        | 1,033             | (117)              | (2,587) |    (530) |
|                                                                                                                                                                                                                                                                                                                            |                              |                   |               |   |   |
| Year      ended December 31, 2008:                                                                                                                                                                                                                                                                                              |                              |                   |               |   |   |
| Revenues                                                                   | $  7,798           | $      5,695      | $      4,348  | $         --  | $  17,841  |
| Net      income (loss)(2)                                                  | (19,548)                          | (1,847)                | 725           | (34,034) |    (54,704) |
|                                                                                                                                                                                                                                                                                                                            |                              |                   |               |   |   |
| Year      ended December 31, 2007:                                                                                                                                                                                                                                                                                              |                              |                   |               |   |   |
| Revenues                                                                   | $      10,567                | $      4,336      | $      3,093  | $         --  | $      17,996  |
| Net      income (loss)(3)                                                  | (4,415)                           | 1,102             | 828           | (9,206) |    (11,691) |

| (1) | Nonsegmented      reconciling items for 2009 include $7,257 of G&A costs, $1,693 of      noncash stock compensation expense, $7,053 of foreign exchange gains, $600      of other expense, and $90 of corporateDD&A. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Nonsegmented      reconciling items for 2008 include $7,030 of G&A costs, $2,367 of      noncash stock compensation expense, $24,279 of foreign exchange losses,      $278 of other expense, and $80 of corporate  DD&A. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Nonsegmented      reconciling items for 2007 include $7,061 of general and administrative      costs, $2,604 of noncash stock compensation expense, $146 of foreign      exchange gains, $433 of other income, and $120 of corporate      DD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | See      note 13 in the notes to the consolidated financial statements for      additional detail concerning our segment  results. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                   | For      the year ended December 31, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                                                                                                                                                                                                                   | 2009                                 |   | 2008 |   | 2007 |
| Revenues                                                                         | $9,430,000                           |   | $7,404,000 |   | $9,098,000 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | +27%                                 |   | -19% |   | +408% |
| Average      price (per Mcf      )                                               | $5.01                                |   | $5.92 |   | $4.95 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | -15%                                 |   | +20% |   | +28% |
| Production      volumes      (Mcf)                                               | 1,882,000                            |   | 1,251,000 |   | 1,840,000 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | +50%                                 |   | -32% |   | +299% |
| Lifting      costs per Mcf (1)                                                   | $0.48                                |   | $0.65 |   | $0.63 |
|   Percent      change versus prior year                                                                                                                                                                                                                                                                      | -26%                                 |   | +3% |   | +17% |

| (1) | Lifting      costs per Mcf are computed by dividing the related lease operating      expenses by the total volume of gasproduced. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                   | For      the year ended December 31, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                                                                                                                                                                                                                   | 2009                                 |   | 2008 |   | 2007 |
| Revenues                                                                         | $3,342,000                           |   | $6,090,000 |   | $5,804,000 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | -45%                                 |   | +5% |   | +22% |
| Average      price (per Bbl      )                                               | $52.03                               |   | $88.01 |   | $60.86 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | -41%                                 |   | +45% |   | +8% |
| Production      volumes      (Bbl)                                               | 64,226                               |   | 69,192 |   | 95,242 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | -7%                                  |   | -27% |   | +13% |
| Lifting      costs per Bbl (1)                                                   | $40.08                               |   | $38.07 |   | $27.04 |
| Percent      change versus prior year                                                                                                                                                                                                                                                                                  | +5%                                  |   | +41% |   | +7% |

| (1) | Lifting      costs per barrel are computed by dividing the related lease operating      expenses by the total barrels of oil produced.  Light crude oil      lifting costs in Poland are based on an allocation of total costs based on      relative revenues between oil and gas.  Lifting costs include      production taxes incurred in the UnitedStates. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                              |   | 2009               |   | 2008               |   | 2007         |
|---------------------------------------------------|--------|--------------------|--------|--------------------|--------|--------------|
| (MMcfe)                                           |   |               |   |               |   |         |
| Proved      Reserves Beginning of Year            |   | 45,864   |   | 34,092   |   | 22,768  |
| Extensions,      Discoveries, and Other Additions |   | 6,333    |   | 11,295   |   | 17,939  |
| Revisions      of Previous Estimates              |   | 515      |   | 2,148    |   | (4,205)      |
| Production                                        |   | (2,266)       |   | (1,671)       |   | (2,410)      |
| Proved      Reserves End of Year                  |   | 50,446   |   | 45,864   |   | 34,092  |

----

----

|                                     | Total               |   | 2010 |   | 2011    |   | 2012    |   | 2013      |   | 2014      |
|------------------------------------------|---------------------|--------|------|--------|---------|--------|---------|--------|-----------|--------|-----------|
|                                     | (In      thousands) |
| Senior      credit facility              | $25,000             |   | --   |   | $15,000 |   | $10,000 |   | $      -- |   | $      -- |
| Interest      payments on long-term debt | 771                 |   | 370  |   | 290     |   | 111     |   | --        |   | --        |

----

| ·   | Commodity Prices – Economic      producibility of reserves and discounted cash flows are now based on a      12-month average commodity price unless contractual arrangements designate      the price to be used, rather than a year-end  price. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure of Unproved      Reserves –      Probable and possible reserves may be disclosed separately on a voluntary      basis. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Proved Undeveloped Reserves      Guidelines      – Reserves may be classified as proved undeveloped if there is a      high degree of confidence that the quantities will be recovered and they      are scheduled to be drilled within the next five years, unless the      specific circumstances justify a longertime. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Third-Party Reserves      Preparation – If a company represents that its estimates of      reserves are prepared or audited by a third party, the company must file a      report of the third party as an exhibit to the relevant registration      statement or report. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Use of Probabilistic      Methods–      Reserves may be estimated using probabilistic methods in which there is at      least a 90% probability of recovery of “proved” reserves, at least a 50%      probability of recovery of “probable” reserves, and at least a 10%      probability of recovery of “possible”reserves. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure by Geographic      Area–      Reserves in foreign countries or continents must be presented separately      if they represent more than 15% of total oil and gas proved      reserves. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | the      period after the balance sheet date during which management of a reporting      entity should evaluate events or transactions that may occur for potential      recognition or disclosure in the financial statements (through the date      that the financial statements are issued or are available to be      issued); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      circumstances under which an entity should recognize events or      transactions occurring after the balance sheet date in its financial      statements; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      disclosures that an entity should make about events or transactions that      occurred after the balance sheetdate. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |
|--------------------------------------------|
| ITEM      7A. QUANTITATIVE AND QUALITATIVE |
| DISCLOSURES      ABOUT MARKET RISK         |
|                                       |

----

|                                                     |
|----------------------------------------------------------|
| ITEM      8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|                                                     |

|                                                       |
|------------------------------------------------------------|
| ITEM      9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS |
| ON      ACCOUNTING AND FINANCIAL DISCLOSURE                |
|                                                       |

----

|                                  |
|---------------------------------------|
| ITEM      9A. CONTROLS AND PROCEDURES |
|                                  |

|                            |
|---------------------------------|
| ITEM      9B. OTHER INFORMATION |
|                            |

|                                                                  |
|-----------------------------------------------------------------------|
| ITEM      10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE  GOVERNANCE |
|                                                                  |

----

|                                 |
|--------------------------------------|
| ITEM      11. EXECUTIVE COMPENSATION |
|                                 |

|                                                          |
|---------------------------------------------------------------|
| ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS |
| AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS           |
|                                                          |

|                                                          |
|---------------------------------------------------------------|
| ITEM      13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, |
| AND      DIRECTOR INDEPENDENCE                                |
|                                                          |

|                                                 |
|------------------------------------------------------|
| ITEM      14. PRINCIPAL ACCOUNTING FEES AND SERVICES |
|                                                 |

----

|                                                  |
|-------------------------------------------------------|
| ITEM      15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
|                                                  |

|                                                                              | Page   |
|-----------------------------------------------------------------------------------|--------|
| Management’s      Report on Internal Control over Financial Reporting       | F-1    |
| Report      of Independent Registered Public Accounting Firm                      | F-2    |
| Consolidated      Balance Sheets as of December 31, 2009 and 2008                 | F-4    |
| Consolidated      Statements of Operations for the Years Ended                    |   |
| December      31, 2009, 2008 and 2007                                             | F-6    |
| Consolidated      Statements of Comprehensive Loss for the Years Ended            |   |
| December      31, 2009, 2008 and 2007                                             | F-7    |
| Consolidated      Statements of Cash Flows for the Years Ended                    |   |
| December      31, 2009, 2008 and 2007                                             | F-8    |
| Consolidated      Statement of Stockholders’ Equity (Deficit) for the Years |   |
| Ended      December 31, 2009, 2008 and 2007                                       | F-9    |
| Notes      to the Consolidated Financial Statements                               | F-10   |

|   | 2. | Supplemental      Schedules.  The supplemental schedules have been omitted      because they are not applicable or the required information is otherwise      included in the accompanying consolidated financial statements and the      notes thereto. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | 3.   | Exhibits.  The      following exhibits are included as part of this  report: |
|--------|----------------|----------------------------------------------------------------------------------------|

| ExhibitNumber* |   | Title      of Document                                                                                                                                 |   | Location                                                                                                                                           |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                   |   |                                                                                                                                               |
| Item      3    |   | Articles      of Incorporation and Bylaws                                                                                                              |   |                                                                                                                                               |
| 3.01           |   | Restated      and Amended Articles of Incorporation                                                                                                    |   | Incorporated      by reference from the quarterly report on Form 10-Q for the quarter ended      September 30, 2000, filed November 7, 2000.  |
| 3.02           |   | Bylaws,      as amended January 2, 2008                                                                                                                |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2007, filed March 10, 2008.         |
| 3.03           |   | Articles      of Amendment to the Restated Articles of Incorporation of FX Energy,      Inc.                                                           |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2005, filed March 14, 2006.         |
| 3.04           |   | Amendment      to Articles of Incorporation Revising and Restating Designation of Rights,      Privileges, and Preferences of Series A Preferred Stock |   | Incorporated      by reference from the quarterly report on Form 10-Q for the period ended      June 30, 2007, filed August 8, 2007.          |
|                |   |                                                                                                                                                        |   |                                                                                                                                               |
|                |   |                                                                                                                                                        |   |                                                                                                                                               |

----

| ExhibitNumber*          |   | Title      of Document                                                                                                                                                                                                                                                                   |   | Location                                                                                                                                    |
|-------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                    |   |                                                                                                                                                                                                                                                                                     |   |                                                                                                                                        |
|        Item      4 |   |        Instruments      Defining the Rights of Security Holders                                                                                                                                                                                                                     |   |                                                                                                                                        |
| 4.01                    |   |  Specimen      Stock Certificate                                                                                                                                                                                                                                                    |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.       |
|                    |   |                                                                                                                                                                                                                                                                                     |   |                                                                                                                                        |
|  4.04              |   | Rights      Agreement dated as of April 4, 2007, between FX Energy, Inc. and Fidelity      Transfer Corp.                                                                                                                                                                                |   | Incorporated      by reference from the quarterly report on Form 10-Q for the period ended      June 30, 2007, filed August 8, 2007.   |
|                    |   |                                                                                                                                                                                                                                                                                     |   |                                                                                                                                        |
| Item      10            |   | Material      Contracts                                                                                                                                                                                                                                                                  |   |                                                                                                                                        |
| 10.26                   |   | Frontier      Oil Exploration Company 1995 Stock Option and Award Plan**                                                                                                                                                                                                                 |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.  |
| 10.27                   |   | FX Energy,      Inc. 1996 Stock Option and Award Plan**                                                                                                                                                                                                                             |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.  |
| 10.28                   |   | FX Energy,      Inc. 1997 Stock Option and Award Plan**                                                                                                                                                                                                                             |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.  |
| 10.29                   |   | FX Energy,      Inc. 1998 Stock Option and Award Plan**                                                                                                                                                                                                                             |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.  |
| 10.53                   |   | Agreement      on Cooperation in Exploration of Hydrocarbons on Foresudetic Monocline      dated April 11, 2000, between Polskie Gornictwo Naftowe I Gazownictwo      S.A. (POGC) and FX Energy Poland, Sp. z o.o. relating to      Fences I project area  |   | Incorporated      by reference from the current report on Form 8-K filed May 2,      2000.                                                  |
| 10.59                   |   | Sales      / Purchase Agreement Special Provisions between Plains Marketing Canada,      L.P. and FX Drilling Company Inc. agreed April 29, 2002                                                                                                                                         |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2002, filed March 27, 2003.  |
| 10.60                   |   | Form      of Non-Qualified Stock Option awarded August 14, 2002, with related      schedule**                                                                                                                                                                                            |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2002, filed March 27, 2003.  |
| 10.62                   |   | Agreement      Regarding Cooperation within the Poznan Area (Fences II) entered into      January 8, 2003, by and between Polskie Gornictwo Naftowe i Gazownictwo      S.A. and FX Energy Poland Sp. z o.o.                                                     |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2002, filed March 27, 2003.       |
| 10.63                   |   | Settlement      Agreement Regarding the Fences I Area entered into January 8, 2003,      by and between Polskie Gornictwo Naftowe i Gazownictwo S.A. and      FX Energy Poland Sp. z o.o.                                                                       |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2002, filed March 27, 2003.       |
|                         |   |                                                                                                                                                                                                                                                                                     |   |                                                                                                                                             |
|                         |   |                                                                                                                                                                                                                                                                                          |   |                                                                                                                                             |

----

| ExhibitNumber*    |   | Title      of Document                                                                                                                                                                                                                                                    |   | Location                                                                                                                                          |
|-------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |                                                                                                                                                                                                                                                                      |   |                                                                                                                                              |
|        10.64 |   |        Farmout      Agreement Entered into by and between FX Energy Poland      Sp. z o.o. and CalEnergy Power (Polska) Sp. z o.o.      Covering the “Fences Area” in the Foresudetic Monocline made as of January      9, 2003 |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2002, filed March 27, 2003. |
|        10.67 |   |        FX Energy,      Inc. 1999 Stock Option and Award Plan**                                                                                                                                                                                                  |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004. |
|        10.68 |   |        FX Energy,      Inc. 2000 Stock Option and Award Plan**                                                                                                                                                                                                  |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004. |
|              |   |                                                                                                                                                                                                                                                                      |   |                                                                                                                                              |
| 10.69             |   | FX Energy,      Inc. 2001 Stock Option and Award Plan**                                                                                                                                                                                                              |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.        |
| 10.70             |   | FX Energy,      Inc. 2003 Long-Term Incentive Plan                                                                                                                                                                                                                   |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2003, filed March 15, 2004.        |
| 10.74             |   | Greater      Zaniemysl Area Agreement made as of March 12, 2004, among FX Energy Poland      Sp. z o.o. and CalEnergy Resources Poland      Sp. z o.o.                                                                                           |   | Incorporated      by reference from the quarterly report on Form 10-Q for the period ended      March 31, 2004, filed May 11, 2004.          |
| 10.75             |   | Form      of Indemnification Agreement between FX Energy, Inc. and directors      and officers with related schedule**                                                                                                                                          |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2008, filed March 16, 2009.             |
|              |   |                                                                                                                                                                                                                                                                      |   |                                                                                                                                              |
| 10.77             |   | Description      of compensation arrangement with executive officers and      directors**                                                                                                                                                                            |   | This      filing.                                                                                                                                 |
| 10.78             |   | Form      of Employment Agreement with related schedule**                                                                                                                                                                                                                 |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.        |
| 10.79             |   | Change      in Control Compensation Agreement with related schedule**                                                                                                                                                                                                     |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.        |
| 10.81             |   | FX Energy,      Inc. 2004 Long-Term Incentive Plan**                                                                                                                                                                                                                 |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2004, filed March 15, 2005.        |
| 10.82             |   | Letter      of Engagement, H. Allen Turner, dated February 14, 2007                                                                                                                                                                                                       |   | Incorporated      by reference from the current report on Form 8-K filed February 20,      2007.                                             |

----

| ExhibitNumber*    |   | Title      of Document                                                                                                                                                                                                                                 |   | Location                                                                                                                                          |   |
|-------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|        10.83 |   |        US$25,000,000      Senior Facility Agreement among FX Poland Sp. z o.o., FX Energy,      Inc., FX Energy Netherlands Partnership CV., FX Energy Netherlands BV.,      and The Royal Bank of Scotland PLC, dated November 17,2006 |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007. |   |
|        10.84 |   |        Common      Stock Purchase Warrant dated November 17, 2006                                                                                                                                                                            |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007. |   |
|        10.85 |   |        Agreement      for Pledges over Shares in FX Energy Poland Sp. z o.o., dated      December 18, 2006                                                                                                                              |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007. |   |
|        10.86 |   |        Subordination      Deed dated December 21, 2006                                                                                                                                                                                            |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007. |   |
|        10.87 |   |  Restated      FX Energy, Inc. 401(k) Stock Bonus Plan dated January 25,      2007**                                                                                                                                                         |   |        Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007. |   |
|              |   |                                                                                                                                                                                                                                                   |   |                                                                                                                                              |   |
| 10.88             |   | Agreement      for the Sale of Natural Gas between FX Energy Poland      Sp. z o.o. and Mazowiecka Spółka Gazownictwa      Sp. z o.o., dated December 29, 2005                                            |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.             |   |
| 10.89             |   | Agreement      No. PL/012216736/05-0030/DH/HB for the Sale of Natural Gas between FX      Energy Poland Sp. z o.o. and Polskie Górnictwo Naftowe I      Gazownictwo S.A., dated December 8, 2005                                   |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.             |   |
| 10.90             |   | Agreement      for the Sale of Wellhead Natural Gas between FX Energy Poland      Sp. z o.o. and PL Energia S.A., dated January 26,      2007                                                                                                |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2006, filed March 13, 2007.        |   |
| 10.91             |   | Form      of Stock Purchase Agreement                                                                                                                                                                                                                  |   | Incorporated      by reference from the current report on Form 8-K filed July 5,      2007.                                                  |   |
| 10.92             |   | Exhibit      10.92, Amendment and Reconfirmation of Supplemental Indemnification      Agreement between FX Energy, Inc. and Dennis B. Goldstein                                                                                                   |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2008, filed March 16, 2009.             |        |
| 10.93             |   | Agreement      No. for the Sale of Natural Gas between FX Energy Poland Sp. z o.o. and      Polskie Górnictwo Naftowe I Gazownictwo S.A., dated June 19,      2009                                                                           |   | This      filing.                                                                                                                                 |   |
|              |   |                                                                                                                                                                                                                                                   |   |                                                                                                                                              |   |
| 10.94             |   | Executive      Incentive Royalty Plan and related schedule**                                                                                                                                                                                      |   | This      filing.                                                                                                                                 |   |

----

|           |   |                                                                                                                                                              |   |                                                                                                                                  |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber* |   |  Title of    Document                                                                                                                                        |   |  Location                                                                                                                        |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| Item      21   |   | Subsidiaries      of the Registrant                                                                                                                               |   |                                                                                                                                  |
| 21.01          |   | Schedule      of Subsidiaries                                                                                                                                     |   | Incorporated      by reference from the annual report on Form 10-K for the period ended      December 31, 2007, filed March 10, 2008. |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| Item      23   |   | Consents      of Experts and Counsel                                                                                                                              |   |                                                                                                                                  |
| 23.01          |   | Consent      of PricewaterhouseCoopers LLP, independent registered public accounting      firm                                                                    |   | This      filing.                                                                                                                     |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| 23.02          |   | Consent      of Hohn Engineering PLLC, Petroleum Engineers                                                                                                   |   | This      filing.                                                                                                                |
| 23.03          |   | Consent      of RPS Energy, Petroleum Engineers                                                                                                                   |   | This      filing.                                                                                                                |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| Item      31   |   | Rule      13a-14(a)/15d-14(a) Certifications                                                                                                                      |   |                                                                                                                                  |
| 31.01          |   | Certification      of Principal Executive Officer Pursuant to Rule 13a-14                                                                                    |   | This      filing.                                                                                                                     |
| 31.02          |   | Certification      of Principal Financial Officer Pursuant to Rule 13a-14                                                                                    |   | This      filing.                                                                                                                     |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| Item      32   |   | Section      1350 Certifications                                                                                                                                  |   |                                                                                                                                  |
| 32.01          |   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  |   | This      filing.                                                                                                                     |
| 32.02          |   | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002       |   | This      filing.                                                                                                                     |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| Item      99   |   | Additional      Exhibits                                                                                                                                          |   |                                                                                                                                  |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| 99.01          |   | Report      of Hohn Engineering PLLC, Petroleum Engineers                                                                                                         |   | To      be filed by amendment.                                                                                                        |
|           |   |                                                                                                                                                              |   |                                                                                                                                  |
| 99.02          |   | Report      of RPS Energy, Petroleum Engineers                                                                                                               |   | To      be filed byamendment.                                                                                                         |

| * | All      exhibits are numbered with the number preceding the decimal indicating the      applicable SEC reference number in Item 601, and the number following the      decimal indicating the sequence of the particular      document.  Omitted numbers in the sequence refer to documents      previously filed as an exhibit, but no longer  required. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Identifies      each management contract or compensatory plan or arrangement required to      be filed as an exhibit, as required by Item 15(a)(3) of Form      10-K. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       |
|------------|
| SIGNATURES |
|       |

|   |                | FX      ENERGY, INC. (Registrant) |
|--------|---------------------|-----------------------------------|
|   |                |                              |   |
|   |                |                              |   |
|   |                |                              |   |
| Dated: | March      16, 2010 | By:                               | /s/      David N. Pierce |
|   |                |                              | David      N. Pierce |
|   |                |                              | President      and Chief Executive Officer |
|   |                |                              |   |
|   |                |                              |   |
|   |                |                              |   |
| Dated: | March      16, 2010 | By:                               | /s/      Clay Newton |
|   |                |                              | Clay      Newton |
|   |                |                              | Principal      Financial Officer |

|                       | /s/      Thomas B. Lovejoy                 |
|----------------------------|--------------------------------------------|
| Dated:      March 16, 2010 | Thomas      B. Lovejoy, Director           |
|                       |                                       |
|                       | /s/      David N. Pierce                   |
| Dated:      March 16, 2010 | David      N. Pierce, Director, President, |
|                       | and      Principal Executive Officer       |
|                       |                                       |
|                       | /s/      Dennis B. Goldstein               |
| Dated:      March 16, 2010 | Dennis      B. Goldstein, Director         |
|                       |                                       |
|                       | /s/      Arnold S. Grundvig, Jr.           |
| Dated:      March 16, 2010 | Arnold      S. Grundvig, Jr., Director     |
|                       |                                       |
|                       | /s/      Jerzy B. Maciolek                 |
| Dated:      March 16, 2010 | Jerzy      B. Maciolek, Director           |
|                       |                                       |
|                       | /s/      Richard Hardman                   |
| Dated:      March 16, 2010 | Richard      Hardman, Director             |
|                       |                                       |
|                       | /s/      H. Allen Turner                   |
| Dated:      March 16, 2010 | H.      Allen Turner, Director             |
|                       |                                       |
|                       | /s/      Clay Newton                       |
| Dated:      March 16, 2010 | Clay      Newton, Principal Financial and  |
|                       | Accounting      Officer                    |

----

----

----

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Balance Sheets |
|--------|----------------------------------|

|   | As      of December 31, 2009 and 2008 |
|--------|---------------------------------------|

|   | (in      thousands) |
|--------|---------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2009   |         | 2008   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |         |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |   |
| Cash      and cash      equivalents                                                                                             | $      | 4,225   |   | $ | 16,588  |
| Marketable      securities                                                                                                      |   | --      |   |   | 4,105  |
| Receivables:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         |   |   |   |
| Accrued      oil  and gas      sales                                                                                            |   | 2,875   |   |   | 1,093  |
| Other      receivables                                                                                                                    |   | 918     |   |   | 1,720  |
| VAT      receivable                                                                                                                       |   | --      |   |   | 2,514  |
| Inventory                                                                                                                       |   | 232     |   |   | 211  |
| Other      current      assets                                                                                                  |   | 394     |   |   | 450  |
| Total      current      assets                                                                                                                      |   | 8,644   |   |   | 26,681  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |   |
| Property      and equipment, at cost:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |         |   |   |   |
| Oil      and gas properties (successful efforts method):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |   |
| Proved                                                                                                                                    |   | 32,700  |   |   | 28,600  |
| Unproved                                                                                                                                  |   | 3,403   |   |   | 2,770  |
| Other      property and      equipment                                                                                          |   | 7,654   |   |   | 6,667  |
| Gross      property and      equipment                                                                                                    |   | 43,757  |   |   | 38,037  |
| Less      accumulated depreciation, depletion and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (11,466)     |   |   | (11,164) |
| Net      property and      equipment                                                                                                                |   | 32,291  |   |   | 26,873  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |   |
| Other      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |   |
| Certificates      of      deposit                                                                                               |   | 406     |   |   | 406  |
| Loan      fees                                                                                                                  |   | 729     |   |   | 842  |
| Total      other      assets                                                                                                                        |   | 1,135   |   |   | 1,248  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |   |
| Total      assets                                                                                                     | $      | 42,070  |   | $ | 54,802  |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Balance Sheets |
|--------|----------------------------------|

|   | As      of December 31, 2009 and 2008 |
|--------|---------------------------------------|

|   | (in      thousands, except share data) |
|--------|----------------------------------------|

|   | -Continued- |
|--------|-------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2009   |          | 2008   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |   |   |   |
| Accounts      payable                                                                                                                                             | $      | 3,569    |   | $ | 7,779  |
| VAT      payable                                                                                                                                                  |   | 575      |   |   | --  |
| Accrued      liabilities                                                                                                                                          |   | 1,048    |   |   | 4,937  |
| Total      current      liabilities                                                                                                                                              |   | 5,192    |   |   | 12,716  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Long-term      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |
| Notes      payable                                                                                                                                                |   | 25,000   |   |   | 25,000  |
| Asset      retirement      obligation                                                                                                                             |   | 1,133    |   |   | 1,932  |
| Total      long-term      liabilities                                                                                                                                            |   | 26,133   |   |   | 26,932  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Total      liabilities                                                                                                                                                                     |   | 31,325   |   |   | 39,648  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Commitments      and Contingencies (Note 6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Stockholders’      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |   |   |   |
| Preferred      stock, $0.001 par value, 5,000,000 shares authorized as of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |   |   |   |
| December      31, 2009 and 2008; no shares      outstanding                                                                                                                      |   | --       |   |   | --  |
| Common      stock, $0.001 par value, 100,000,000 shares authorized as    of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |
| December 31,      2009 and 2008; 43,037,540 and 42,202,878 shares issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |   |   |   |
| and      outstanding as of December 31, 2009 and 2008, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 43       |   |   | 42  |
| Additional      paid in      capital                                                                                                                              |   | 160,594  |   |   | 158,075  |
| Cumulative      translation      adjustment                                                                                                                       |   | 10,738   |   |   | 17,137  |
| Accumulated      deficit                                                                                                                                          |   | (160,630)     |   |   | (160,100) |
| Total      stockholders’      equity                                                                                                                                                 |   | 10,745   |   |   | 15,154  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |
| Total      liabilities and stockholders’      equity                                                                                              | $      | 42,070   |   | $ | 54,802  |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Statements of Operations |
|--------|--------------------------------------------|

|   | For      the years ended December 31, 2009, 2008 and2007 |
|--------|----------------------------------------------------------|

|   | (in      thousands, except per shareamounts) |
|--------|----------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2009   |         | 2008   |   | 2007         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |         |   |   |   |
| Oil      and gas      sales                                                                                            | $      | 12,772  |   | $      | 13,494  |   | $ | 14,903  |
| Oilfield      services                                                                                                 |   | 1,892   |   |   | 4,347   |   |   | 3,093  |
| Total      revenues                                                                                                                        |   | 14,664  |   |   | 17,841  |   |   | 17,996  |
| Operating      costs and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |         |   |   |         |   |   |   |
| Lease      operating      expenses                                                                                     |   | 3,478   |   |   | 3,441   |   |   | 3,538  |
| Exploration      costs                                                                                                 |   | 4,829   |   |   | 15,389  |   |   | 10,624  |
| Impairment      of oil and gas      properties                                                                         |   | 1,335   |   |   | 14,746  |   |   | 2,299  |
| Oilfield      services      costs                                                                                      |   | 1,412   |   |   | 2,751   |   |   | 1,998  |
| Depreciation,      depletion and amortization (DD&A)                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 1,602   |   |   | 1,720   |   |   | 2,064  |
| Accretion      expense                                                                                                 |   | 41      |   |   | 84      |   |   | 78  |
| Stock      compensation                                                                                                |   | 1,693   |   |   | 2,367   |   |   | 2,604  |
| Bad      debt      expense                                                                                             |   | --      |   |   | 460     |   |   | --  |
| General      and administrative costs (G&A)                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 7,257   |   |   | 7,030   |   |   | 7,061  |
| Total      operating costs and      expenses                                                                                               |   | 21,647  |   |   | 47,988  |   |   | 30,266  |
| Operating      loss                                                                                     |   | (6,983)      |   |   | (30,147)     |   |   | (12,270) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |   |
| Other      income (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |   |   |         |   |   |   |
| Interest      income (net of interest expense) and                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |         |   |   |         |   |   |   |
| other      income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (600)        |   |   | (278)        |   |   | 433  |
| Foreign      exchange gain      (loss)                                                                                 |   | 7,053   |   |   | (24,279)     |   |   | 146  |
| Total      other income      (expense)                                                                                                     |   | 6,453   |   |   | (24,557)     |   |   | 579  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |   |
| Net      loss                                                                                           | $      | (530)        |   | $      | (54,704)     |   | $ | (11,691) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |   |
| Basic      and diluted net loss per common share                                                                                                                                                                                                                                                                                                                                                                                                                                               | $      | (0.01)       |   | $      | (1.35)       |   | $ | (0.32) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |   |
| Basic      and diluted weighted average number                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         |   |   |         |   |   |   |
| of      shares      outstanding                                                                                        |   | 42,529  |   |   | 40,420  |   |   | 36,694  |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Statements of Comprehensive Loss |
|--------|----------------------------------------------------|

|   | For      the years ended December 31, 2009, 2008 and2007 |
|--------|----------------------------------------------------------|

|   | (in      thousands) |
|--------|---------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2009     |   |   | 2008         |   | 2007   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     |   |   |         |   |   |   |
| Net      loss                                                                             | $      | (530)    |   | $      | (54,704)     |   | $      | (11,691) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     |   |   |         |   |   |   |
| Other      comprehensive income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |     |   |   |         |   |   |   |
| Foreign      currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (6,399)  |   |   | 13,584  |   |   | --  |
| Increase      (decrease) in market value of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                     |   | --  |   |   | 1       |   |   | 71  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     |   |   |         |   |   |   |
| Comprehensive      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $      | (6,929)  |   | $      | (41,119)     |   | $      | (11,620) |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Statements of Cash Flows |
|--------|--------------------------------------------|

|   | For      the years ended December 31, 2009, 2008 and2007 |
|--------|----------------------------------------------------------|

|   | (in      thousands) |
|--------|---------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2009         |   |   | 2008         |   |   | 2007         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |
| Net      loss                                                                                                                                  | $      | (530)        |   | $      | (54,704)     |   | $      | (11,691)     |
| Adjustments      to reconcile net loss to net cash used in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |
| operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |
| Depreciation,      depletion and      amortization                                                                                                                 |   | 1,602   |   |   | 1,720   |   |   | 2,064   |
| Impairment      of oil and gas      properties                                                                                                                     |   | 1,864   |   |   | 14,746  |   |   | 2,299   |
| Accretion      expense                                                                                                                                             |   | 41      |   |   | 84      |   |   | 78      |
| (Gain)      loss on property      dispositions                                                                                                                     |   | --      |   |   | (5)          |   |   | --      |
| Stock      compensation (G&A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 1,693   |   |   | 2,367   |   |   | 2,604   |
| Foreign      exchange (gains)      losses                                                                                                                          |   | (8,296)      |   |   | 22,306  |   |   | --      |
| Common      stock issued for services      (G&A)                                                                                                               |   | 694     |   |   | 498     |   |   | 242     |
| Loan      fee      amortization                                                                                                                                    |   | 242     |   |   | 210     |   |   | 183     |
| Increase      (decrease) from changes in working capital items:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |         |   |   |         |   |   |         |
| Receivables                                                                                                                                                        |   | 1,682   |   |   | (3,056)      |   |   | (583)        |
| Inventory                                                                                                                                                          |   | (21)         |   |   | (33)         |   |   | 28      |
| Other      current      assets                                                                                                                                     |   | 58      |   |   | (85)         |   |   | (43)         |
| Other      assets                                                                                                                                                  |   | (128)        |   |   | (136)        |   |   | (239)        |
| Accounts      payable and accrued      liabilities                                                                                                                 |   | (4,025)      |   |   | 1,840   |   |   | 3,479   |
| Asset      retirement      obligation                                                                                                                              |   | (705)        |   |   | --      |   |   | (2)          |
| Net      cash used in operating      activities                                                                                                                              |   | (5,829)      |   |   | (14,248)     |   |   | (1,581)      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |
| Additions      to oil and gas      properties                                                                                                  |   | (7,666)      |   |   | (21,808)     |   |   | (7,517)      |
| Additions      to other property and      equipment                                                                                            |   | (983)        |   |   | (1,077)      |   |   | (966)        |
| Additions      to marketable      securities                                                                                                   |   | (11)         |   |   | (186)        |   |   | (9,610)      |
| Proceeds      from maturities of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 4,661   |   |   | 11,284  |   |   | 4,941   |
| Proceeds      from sale of      assets                                                                                                         |   | --      |   |   | 15      |   |   | --      |
| Net      cash used in investing      activities                                                                                                                              |   | (3,999)      |   |   | (11,772)     |   |   | (13,152)     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |         |   |   |         |
| Proceeds      from issuance of common stock, net of offering costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | --      |   |   | --      |   |   | 12,436  |
| Proceeds      from loan related to auction-rate securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | --      |   |   | 3,354   |   |   | --      |
| Payments      on loan related to auction-rate securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (2,808)      |   |   | (546)        |   |   | --      |
| Proceeds      from notes      payable                                                                                                          |   | --      |   |   | 25,000  |   |   | --      |
| Proceeds      from exercise of stock options and warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 132     |   |   | 12,313  |   |   | 1,915   |
| Net      cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (2,676)      |   |   | 40,121  |   |   | 14,351  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |
| Effect      of exchange rate changes on      cash                                                                                    |   | 141     |   |   | (1,775)      |   |   | --      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |
| Net      increase (decrease) in      cash                                                                                            |   | (12,363)     |   |   | 12,326  |   |   | (382)        |
| Cash      and cash equivalents at beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 16,588  |   |   | 4,262   |   |   | 4,644   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   |   |         |   |   |         |
| Cash      and cash equivalents at end of      year                                                                                   | $      | 4,225   |   | $      | 16,588  |   | $      | 4,262   |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Consolidated      Statement of Stockholders’ Equity(Deficit) |
|--------|--------------------------------------------------------------------|

|   | For      the years ended December 31, 2009, 2008 and2007 |
|--------|----------------------------------------------------------|

|   | (in      thousands) |
|--------|---------------------|

|                                                                                                                                                                                                                                                                                                                                          |      |   | Common      Stock |   |   |   |   | Accumulated  |   |               |   |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|-------------------|--------|--------|--------|--------|--------------|--------|--------------------|--------|-------------|
|                                                                                                                                                                                                                                                                                                                                          |      |   |              |   | $0.001 |   |   | Additional   |   | Other              |   |        |   | Total |
|                                                                                                                                                                                                                                                                                                                                          | Preferred |   | Shares            |   | Par    |   |   | Paid      in |   | Comprehensive      |   | Accumulated |   | Stockholders’ |
|                                                                                                                                                                                                                                                                                                                                          | Stock     |   | Issued            |   | Value  |   |   | Capital      |   | Income      (Loss) |   | Deficit     |   | Equity      (Deficit) |
|                                                                                                                                                                                                                                                                                                                                          |      |   |              |   |   |   |   |         |   |               |   |        |   |   |   |   |   |   |   |
| Balance      as of December 31, 2006                                                                                                                                                                                                                                                                                                          | --        |   | 35,561            |   | $      | 36     |   |         | $      | 125,706            |   | $           | (72) |   | $ | (93,705) |   | $ | 31,965  |
| Common      stock  issued for services and other                                                                                                                                                                                                                                                                                    | --        |   | 463               |   |   | --     |   |         |   | 242                |   |        | --  |   |   | --  |   |   | 242  |
| Exercise      of stock options and warrants                                                                                                                                                                                                                                                                                                   | --        |   | 672               |   |   | 1      |   |         |   | 1,915              |   |        | --  |   |   | --  |   |   | 1,916  |
| Issuance      of common stock                                                                                                                                                                                                                                                                                                                 | --        |   | 1,500             |   |   | 1      |   |         |   | 12,434             |   |        | --  |   |   | --  |   |   | 12,435  |
| Stock      compensation                                                                                                                                                                                                                                                                                    | --        |   | --                |   |   | --     |   |         |   | 2,604              |   |        | --  |   |   | --  |   |   | 2,604  |
| Other      comprehensive      income                                                                                                                                                                                  | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | 7 1 |   |   | --  |   |   | 71  |
| Net      loss for      year                                                    | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | --  |   |   | (11,691) |   |   | (11,691) |
| Balance      as of December 31, 2007                                                                                                                                                                                                                                                                                                          | --        |   | 38,196            |   | $      | 38     |   |         | $      | 142,901            |   | $           | (1) |   | $ | (105,396) |   | $ | 37,542  |
| Common      stock  issued for services and other                                                                                                                                                                                                                                                                                    | --        |   | 488               |   |   | --     |   |         |   | 498                |   |        | --  |   |   | --  |   |   | 498  |
| Exercise      of stock options and warrants                                                                                                                                                                                                                                                                                                   | --        |   | 3,519             |   |   | 4      |   |         |   | 12,309             |   |        | --  |   |   | --  |   |   | 12,313  |
| Stock      compensation                                                                                                                                                                                                                                                                                                                       | --        |   | --                |   |   | --     |   |         |   | 2,367              |   |        | --  |   |   | --  |   |   | 2,367  |
| Cumulative      translation adjustment due to                                                                                                                                                                                                                                                                                                 | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | 3,553  |   |   | --  |   |   | 3,553  |
| change      in functional currency                                                                                                                                                                                                                                                                                                            |      |   |              |   |   |   |   |         |   |               |   |        |   |   |   |   |   |   |   |
| at      October 1, 2008                                                                                                                                                                                                                                                                                                                       |      |   |              |   |   |   |   |         |   |               |   |        |   |   |   |   |   |   |   |
| Other      comprehensive income                                                                                                                                                                                                                                                                                                               | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | 13,585  |   |   | --  |   |   | 13,585  |
| Net      loss for      year                                                    | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | --  |   |   | (54,704) |   |   | (54,704) |
| Balance      as of December 31, 2008                                                                                                                                                                                                                                                                                                          | --        |   | 42,203            |   | $      | 42     |   |         | $      | 158,075            |   | $           | 17,137  |   | $ | (160,100) |   | $ |   15,154  |
| Common      stock  issued for services and other                                                                                                                                                                                                                                                                                    | --        |   | 610               |   |   | 1      |   |         |   | 694                |   |        | --  |   |   | --  |   |   | 695  |
| Exercise      of stock options and warrants                                                                                                                                                                                                                                                                                                   | --        |   | 225               |   |   | --     |   |         |   | 132                |   |        | --  |   |   | --  |   |   | 132  |
| Stock      compensation                                                                                                                                                                                                                                                                                                                       | --        |   | --                |   |   | --     |   |         |   | 1,693              |   |        | --  |   |   | --  |   |   | 1,693  |
| Other      comprehensive income                                                                                                                                                                                                                                                                                                               | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | (6,399) |   |   | --  |   |   | (6,399) |
| Net      loss for year                                                                                                                                                                                                                                                                                                                        | --        |   | --                |   |   | --     |   |         |   | --                 |   |        | --  |   |   | (530) |   |   | (530) |
| Balance      as of December 31, 2009                                                                                                                                                                                                                                                                                                          | --        |   | 43,038            |   | $      | 43     |   |         | $      | 160,594            |   | $           | 10,738  |   | $ | (160,630) |   | $ | 10,745  |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Notes      to the Consolidated FinancialStatements |
|--------|----------------------------------------------------|

| Note      1:  Summary of Significant Accounting    Policies |  |
|-----------------------------------------------------------------------|--|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | December      31, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2009              |   | 2008 |   | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |              |   |   |   | (In      thousands) |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |              |   |   |   |   |   |   |   |
| Beginning      balance at January      1                                                                        | $                 | 2,390  |   | $ | 669  |   | $ | 2,386  |
| Additions      to capitalized exploratory well costs                                                                                                                                                                                                                                                                                                                                                                                                                               |              |   |   |   |   |   |   |   |
| pending      the determination of proved reserves                                                                                                                                                                                                                                                                                                                                                                                                                                  |              | 1,766  |   |   | 2,390  |   |   | 669  |
| Reclassifications      to wells, facilities and equipment                                                                                                                                                                                                                                                                                                                                                                                                                          |              |   |   |   |   |   |   |   |
| based      on the determination of proved reserves                                                                                                                                                                                                                                                                                                                                                                                                                                 |              | (4,156) |   |   | --  |   |   | (2,386) |
| Capitalized      exploratory well costs charged to expense                                                                                                                                                                                                                                                                                                                                                                                                                         |              | --  |   |   | (669) |   |   | --  |
| Ending      balance at December      31                                                                         | $                 | --  |   | $ | 2,390  |   | $ | 669  |

|                                  |                |        | Estimated        |
|---------------------------------------|---------------------|-------------|------------------|
|                                  | December      31,   |        | Useful      Life |
|                                  | 2009                |        | 2008             |   | (in      years) |
|                                  | (In      thousands) |        |             |
|                                  |                |        |             |   |   |   |   |
| Other      property and equipment:    |                |        |             |   |   |   |   |
| Drilling      rigs                    | $                   | 5,980  |             | $ | 5,101  |   | 6 |
| Other      vehicles                   |                | 355    |             |   | 309  |   | 5 |
| Building                              |                | 110    |             |   | 108  |   | 40 |
| Office      equipment and furniture   |                | 1,209  |             |   | 1,149  |   | 3      to 6 |
| Total      cost                       |                | 7,654  |             |   | 6,667  |   |   |
| Accumulated      depreciation         |                | (5,355)     |             |   | (4,663) |   |   |
| Net      other property and equipment | $                   | 2,299  |             | $ | 2,004  |   |   |

----

|                                                         |   | Year      Ended December 31, |
|--------------------------------------------------------------|--------|------------------------------|
|                                                         |   | 2009                         |   | 2008 |   | 2007 |
|                                                         |   | (In      thousands)          |
|                                                         |   |                         |   |   |   |   |
| Noncash      investing transactions:                         |   |                         |   |   |   |   |
| Additions      to properties included in current liabilities |   | $327                         |   | $1,927 |   | $428 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Year      Ended December 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2009                         |   | 2008 |   | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (In      thousands)          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                         |   |   |   |   |
| Cash      paid for interest:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                         |   |   |   |   |
| Cash      paid during the year for      interest                                                                                              |   | $415                         |   | $418 |   | $125 |

----

| ·   | Commodity Prices – Economic      producibility of reserves and discounted cash flows are now based on a      12-month average commodity price unless contractual arrangements designate      the price to be used, rather than a year-end  price. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure of Unproved      Reserves –      Probable and possible reserves may be disclosed separately on a voluntary      basis. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Proved Undeveloped Reserves      Guidelines      – Reserves may be classified as proved undeveloped if there is a      high degree of confidence that the quantities will be recovered and they      are scheduled to be drilled within the next five years, unless the      specific circumstances justify a longertime. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Third-Party Reserves      Preparation – If a company represents that its estimates of      reserves are prepared or audited by a third party, the company must file a      report of the third party as an exhibit to the relevant registration      statement or report. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Use of Probabilistic      Methods–      Reserves may be estimated using probabilistic methods in which there is at      least a 90% probability of recovery of “proved” reserves, at least a 50%      probability of recovery of “probable” reserves, and at least a 10%      probability of recovery of “possible”reserves. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure by Geographic      Area–      Reserves in foreign countries or continents must be presented separately      if they represent more than 15% of total oil and gas proved      reserves. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | the      period after the balance sheet date during which management of a reporting      entity should evaluate events or transactions that may occur for potential      recognition or disclosure in the financial statements (through the date      that the financial statements are issued or are available to be      issued); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      circumstances under which an entity should recognize events or      transactions occurring after the balance sheet date in its financial      statements; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      disclosures that an entity should make about events or transactions that      occurred after the balance sheetdate. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Year      Ended        |   |   | Year      Ended                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | December      31, 2009 |   |   | December      31, 2008                                               |
| Beginning      balance                                                                      | $      | 17,137            |   | $      |           --  |
| Cumulative      translation adjustment due to change                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   |   |   |                                                                 |
| in      functional      currency                                                                      |   | --                |   |   | 3,553                                                           |
| Increase      (decrease) related to losses (gains)                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   |   |   |                                                                 |
| on      intercompany      loans                                                                       |   | (8,297)                |   |   | 22,373                                                          |
| Increase      (decrease) related to translation adjustments                                                                                                                                                                                                                                                                                                                                                                                          |   | 1,898             |   |   | (8,789)                                                              |
| Ending      balance                                                                         | $      |  10,738      |   | $      |  17,137                                                    |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Options,      Warrants and     |   |                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Unvested      Restricted Stock |   | Price      Range    |
| Balance      sheet date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                           |   |                |
|   December      31,      2009                                                                         | 2,209,976                      |   | $0.00      - $10.65 |
|   December      31,      2008                                                                         | 2,694,862                      |   | $0.00      - $10.65 |
|   December      31,      2007                                                                         | 6,320,602                      |   | $0.00      - $10.65 |

| Note      2:  Asset Retirement Obligation |  |
|-----------------------------------------------------|--|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | December      31,   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2009                |   | 2008 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (In      thousands) |
| Asset      retirement obligations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                |   |   |   |   |
| Beginning      balance                                                                                                                 | $                   | 1,932  |   | $ | 1,037 |
| Current      year      additions                                                                                                       |                |  193  |   |   | -- |
| Current      year      revisions                                                                                                       |                |  (529) |   |   |  811 |
| Liabilities      settled                                                                                                               |                | (169) |   |   | -- |
| Foreign      exchange      adjustments                                                                                                 |                | 24  |   |   | -- |
| Accretion      expense                                                                                                                 |                | 41  |   |   | 84 |
| Ending      balance                                                                                                                              | $                   | 1,294  |   | $ | 1,932 |

| Note      3:  Other Assets |  |
|--------------------------------------|--|

----

| Note      4:  Accrued Liabilities |   |
|---------------------------------------------|--------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | December      31,   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2009                |   | 2008 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (In      thousands) |
| Accrued      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                |   |   |   |   |
| Credit      facility commitment      fees                                                                                                                  | $                   | -- |   | $ | 2 |
| Partner      share of oil & gas revenue and joint operating costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                | 127 |   |   | 356 |
| Compensation-related      costs                                                                                                                            |                | 449 |   |   | 841 |
| Interest      expense                                                                                                                                      |                | 15 |   |   | 42 |
| Current      portion of asset retirement      obligation                                                                                                   |                | 359 |   |   | -- |
| Foreign      currency derivative      contracts                                                                                                            |                | -- |   |   | 888 |
| Oilfield      equipment installment      note                                                                                                              |                | 98 |   |   | -- |
| Loan      related to auction-rate securities (Note      8)                                                                                                 |                | -- |   |   | 2,808 |
| Total                                                                                                                                                                | $                   | 1,048 |   | $ | 4,937 |

| Note      5:  Notes Payable |  |
|---------------------------------------|--|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | For      the Year Ended |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | December      31, 2009  |
| Balance      at January 1,      2009                                                                                             | $25,000                 |
| Proceeds      from      borrowings                                                                                               | --                      |
| Balance      at December 31,      2009                                                                                           | $25,000                 |

----

| Note      6:  Commitments and Contingencies |  |
|-------------------------------------------------------|--|

| Note      7:  Liquidity |   |
|-----------------------------------|--------|

----

| Note 8:  Fair      Value Measurements and Marketable Securities |  |
|--------------------------------------------------------------------------------|--|

| ·   | Level      1:  Unadjusted quoted prices in active markets for      identical assets and liabilities. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Level      2:  Observable inputs other than those included in Level      1.  For example, quoted prices for similar assets or liabilities      in active markets or quoted prices for identical assets or liabilities in      inactive markets. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3:  Unobservable inputs reflecting management’s own      assumptions about the inputs used in pricing the asset or      liability. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                         | December      31, |   |       |   |       |   |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|------------|--------|------------|--------|------------|
|                                                                                                                                                                                                                                                                                                                                                                         | 2009              |   | Level 1(1) |   | Level 2(2) |   | Level 3(3) |
| Cash      equivalents:                                                                                                                                                                                                                                                                                                                                                       |              |   |       |   |       |   |       |
| Money      market      funds                                                         | $      783        |   | $      783 |   | --         |   | --         |
| Treasury      bills                                                                  | 254               |   | 254        |   | --         |   | --         |

| (1) | Quoted      prices in active markets for identicalassets. |
|-----|-----------------------------------------------------------|

| (2) | Significant      other observable inputs. |
|-----|-------------------------------------------|

| (3) | Significant      unobservable inputs. |
|-----|---------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | For      the Year Ended                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | December      31, 2009                                    |
| Balance      at January 1,      2009                                                                                                      | $      4,650                                         |
| Purchases,      issuances and      settlements                                                                                            | (4,650)                                                   |
| Balance      at December 31,      2009                                                                                                    | $        --  |

----

|  Note      9:  Income Taxes |  |
|--------------------------------------------|--|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | December      31,   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2009                |   | 2008 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (In      thousands) |
| Deferred      tax liability:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |   |   |   |   |
| Property      and equipment basis      differences                                                                                                  | $                   | (577) |   | $ | (288) |
| Deferred      tax asset:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                |   |   |   |   |
| Net      operating loss carryforwards:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |   |   |   |   |
| United      States                                                                                                                                            |                | 31,411  |   |   | 27,795  |
| Poland                                                                                                                                                        |                | 6,396  |   |   | 5,607  |
| Oil      and gas      properties                                                                                                                    |                | 4,807  |   |   | 6,806  |
| Accrued      interest      expense                                                                                                                  |                | 6,492  |   |   | 4,269  |
| Foreign      exchange translation      losses                                                                                                       |                | 2,675  |   |   | 4,051  |
| Options      issued for      services                                                                                                               |                | 1,194  |   |   | 1,256  |
| Asset      retirement      obligation                                                                                                               |                | 411  |   |   | 721  |
| Valuation      allowance                                                                                                                            |                | (52,809) |   |   | (50,217) |
| Total                                                                                                                                                                   | $                   | --  |   | $ | --  |

|                                                               |   | Year      Ended December 31, |
|--------------------------------------------------------------------|--------|------------------------------|
|                                                               |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
|                                                               |   | (In      thousands)          |   |
| Valuation      allowance:                                          |   |                         |   |   |   |   |   |   |   |
| Balance,      beginning of year                                    | $      |  (50,217)               |   | $ |  (36,938) |   | $ |  (32,028) |   |
| Change      in  property and equipment basis differences |   | 2,288                   |   |   | (6,193) |   |   | (1,249) |   |
| Decrease      (increase) due to foreign exchange translation loss  |   | 1,376                   |   |   | (4,051) |   |   | --  |   |
| Change      in accrued interest expense                            |   | (2,223)                      |   |   | (4,269) |   |   |   |   |
| Decrease      (Increase) due to net operating loss                 |   | (4,405)                      |   |   | 1,465  |   |   | (2,179) |   |
| Other                                                              |   | 372                     |   |   | (231) |   |   | (1,482) |   |
| Total                                                              | $      |  (52,809)               |   | $ |  (50,217) |   | $ |  (36,938) |   |

----

|                                                                                                                                                                                                                                                                                                              | United      States  |   | Poland             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|--------------------|
|                                                                                                                                                                                                                                                                                                              | (In      thousands) |
| Year      of NOL expiration:                                                                                                                                                                                                                                                                                      |                |   |               |
| 2009                                                                        | $  3,565  |   | $  7,020 |
| 2010                                                                        | 8,368               |   | 11,027             |
| 2011                                                                        | 4,995               |   | --                 |
| 2012                                                                        | 6,145               |   | 11,621             |
| 2013      and      thereafter                                               | 61,140              |   | 3,997              |

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Year      Ended December 31,   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009                           |   | 2008 |   | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (In      thousands)            |
| Domestic                                                                      |   | $      (8,727)                 |   | $      (11,230) |   | $   (6,078) |
| Foreign                                                                       |   | 8,197                     |   | (43,474) |   | (5,613) |
| Total                                                                                   |   | $    (530) |   | $      (54,704) |   | $      (11,691) |

|  Note      10:  Stockholders’ Equity |  |
|-----------------------------------------------------------|--|

| Note      11:  Stock Options, Warrants and Restricted      Stock |  |
|----------------------------------------------------------------------------|--|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                      |   | Weighted            |   | Number          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------|---------------------|--------|-----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Number                    |   | Average             |   | of      Options |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | of      Shares            |   | Exercise      Price |   | Available       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Authorized                |   | of      Outstanding |   | for      Future |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Under      Plan           |   | Options             |   | Issuance        |
| Equity      compensation plans approved by stockholders:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                      |   |                |   |            |
| 1995      Stock Option and Award      Plan                                                                                |    500,000 |   | $7.49               |   | --              |
| 1996      Stock Option and Award      Plan                                                                                |    500,000 |   | 3.55                |   | --              |
| 1997      Stock Option and Award      Plan                                                                                |    500,000 |   | 5.87                |   | --              |
| 1998      Stock Option and Award      Plan                                                                                |    500,000 |   | 5.63                |   | --              |
| 1999      Stock Option and Award      Plan                                                                                |    500,000 |   | 8.37                |   | --              |
| 2000      Stock Option and Award      Plan                                                                                |    600,000 |   | 2.61                |   | --              |
| 2001      Stock Option and Award      Plan                                                                                |    600,000 |   | 3.22                |   | --              |
| 2003      Long Term Incentive      Plan                                                                                   |    800,000 |   | 6.64                |   | 1,627           |
| 2004      Long Term Incentive      Plan                                                                                   | 1,000,000                 |   | 8.43                |   | 124,013         |
| Total                                                                                                                               | 5,500,000                 |   | $5.65               |   | 125,640         |

|                                                                                                                                                                                                                                          | 2009            |   | 2008     |   | 2007            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------|----------|--------|-----------------|
|                                                                                                                                                                                                                                          |            |   | Weighted |   |            |   | Weighted |   |   |   | Weighted |
|                                                                                                                                                                                                                                          |            |   | Average  |   |            |   | Average |   |   |   | Average |
|                                                                                                                                                                                                                                          | Number      of  |   | Exercise |   | Number      of  |   | Exercise |   | Number      of |   | Exercise |
|                                                                                                                                                                                                                                          | Options         |   | Price    |   | Options         |   | Price |   | Options |   | Price |
| Options      outstanding:                                                                                                                                                                                                                     |            |   |     |   |            |   |   |   |   |   |   |
| Beginning      of year                                                                                                                                                                                                                        | 1,980,441  |   | $5.65    |   | 2,315,441  |   | $5.19 |   | 2,836,833  |   | $5.08 |
| Granted                                                   | --         |   | --       |   | --         |   | -- |   | --  |   | -- |
| Exercised                                                 | (435,000)       |   | 2.40     |   | (335,000)       |   | 2.44 |   | (466,726) |   | 4.13 |
| Cancelled                                                 | (75,000)        |   | 8.58     |   | --         |   | 0.00 |   | (54,666) |   | 8.42 |
| Expired                                                   | --         |   | --       |   |  --   |   | -- |   | --  |   | -- |
| End      of      year                                     | 1,470,441  |   | $6.47    |   | 1,980,441  |   | $5.65 |   | 2,315,441  |   | $5.19 |
|                                                                                                                                                                                                                                          |            |   |     |   |            |   |   |   |   |   |   |
| Exercisable      at year-end                                                                                                                                                                                                                  | 1,470,441  |   | $6.47    |   | 1,980,441  |   | $5.65 |   | 2,303,776  |   | $5.16 |

----

|                                                                                                                                                                                       |   | Outstanding     |   | Exercisable           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|-----------------------|
|                                                                                                                                                                                       |   |            |   | Weighted              |   |   |   |   |   |   |
|                                                                                                                                                                                       |   |            |   | Average               |   | Weighted |   |   |   | Weighted |
| Exercise                                                                                                                                                                                   |   | Number          |   | Remaining             |   | Average |   | Number |   | Average |
|                                                                                                                                                                                       |   | of      Options |   | Contractual      Life |   | Exercise |   | of      Options |   | Exercise |
| Price      Range                                                                                                                                                                           |   | Outstanding     |   | (in      years)       |   | Price |   | Exercisable |   | Price |
| $3.14      -      $3.20                             |   | 51,000          |   | 0.69                  |   | $3.19 |   | 51,000 |   | $3.19 |
| $3.98      -      $3.98                             |   | 587,109         |   | 0.82                  |   | 3.98 |   | 587,109 |   | 3.98 |
| $6.06      -      $6.06                             |   | 4,167           |   | 1.07                  |   | 6.06 |   | 4,167 |   | 6.06 |
| $8.37      -      $8.37                             |   | 793,165         |   | 1.67                  |   | 8.37 |   | 793,165 |   | 8.37 |
| $9.00      -      $10.65                            |   | 35,000          |   | 2.35                  |   | 9.89 |   | 35,000 |   | 9.89 |
| Total                                                                        |   | 1,470,441       |   | 1.31                  |   | $6.47 |   | 1,470,441 |   | $6.47 |

|                                                                                                                                                                                                                                                                                                                  | 2009           |   | 2008           |   | 2007           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|----------------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                  | Number         |   | Number         |   | Number         |   |
|                                                                                                                                                                                                                                                                                                                  | of      Shares |   | of      Shares |   | of      Shares |   |
| Unvested      restricted stock outstanding:                                                                                                                                                                                                                                                                           |           |   |           |   |           |   |
| Beginning      of      year                                                | 714,421   |   | 679,788   |   | 516,900   |   |
| Issued                                                                                                                                                                                                                                                                                                                | 379,500   |   | 367,000   |   | 370,925   |   |
| Forfeited                                                                  | (18,798)       |   | (8,690)        |   | (4,020)        |   |
| Vested                                                                     | (335,588)      |   | (323,677)      |   | (204,017)      |   |
| End      of      year                                                      | 739,535   |   | 714,421   |   | 679,788   |   |

|                                                                                                                                                                                                                                                                                                            | 2008            |   | 2007         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------|--------------|
|                                                                                                                                                                                                                                                                                                            | Number          |   | Price        |   | Number |   | Price |
|                                                                                                                                                                                                                                                                                                            | of      Shares  |   | Range        |   | of      Shares |   | Range |
| Warrants      outstanding and exercisable:                                                                                                                                                                                                                                                                      |            |   |         |   |   |   |   |
| Beginning      of      year                                               | 3,325,373  |   | $3.60--$6.00 |   | 3,615,373  |   | $3.60--$6.00 |
| Issued                                                                    | --         |   | --           |   | --  |   | -- |
| Exercised                                                                 | (3,215,373)     |   | $3.66        |   | (290,000) |   | $3.60 |
| Expired                                                                   | (110,000)       |   | $6.00        |   |   |   |   |
| End      of      year                                                               | --         |   |         |   | 3,325,373  |   | $3.60--$6.00 |

----

| Note      12:  Business Segments |   |
|--------------------------------------------|--------|

|                                                                                                                                                                                                                                                                                                                                                                                                          | 2009                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                          |                              |   | Oilfield |   | Total |
|                                                                                                                                                                                                                                                                                                                                                                                                          | Exploration      & Production |   | Services |   | (In      thousands) |
|                                                                                                                                                                                                                                                                                                                                                                                                          | U.S.                              |   | Poland |   |   |   |   |
| Operations      summary:                                                                                                                                                                                                                                                                                                                                                                                      |                              |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                               | $                                 | 3,313  |   | $ | 9,459  |   | $ | 1,892  |   | $ | 14,664  |
| Lease      operating      expense                                                                      |                              | (2,528) |   |   | (950) |   |   | --  |   |   | (3,478) |
| Oilfield      services      costs                                                                      |                              | --  |   |   | --  |   |   | (1,412) |   |   | (1,412) |
| Exploration      expense                                                                               |                              | (204) |   |   | (4,625) |   |   | --  |   |   | (4,829) |
| Impairment      expense / ARO      revision                                                            |                              | 529  |   |   | (1,864) |   |   | --  |   |   | (1,334) |
| Accretion      expense                                                                                 |                              | (13) |   |   | (28) |   |   | --  |   |   | (41) |
| Asset      retirement obligation      gain                                                             |                              | 696  |   |   | --  |   |   | --  |   |   | 696  |
| DD&A      expense                                                                                  |                              | (64) |   |   | (851) |   |   | (597) |   |   | (1,512) |
| Operating      income      (loss)                                                                      | $                                 | 1,033  |   | $ | 1,141  |   | $ | (117) |   | $ | 2,057  |
| Identifiable      net property and equipment:                                                                                                                                                                                                                                                                                                                                                                 |                              |   |   |   |   |   |   |   |   |   |   |
| Unproved      properties                                                                               | $                                 | 20  |   | $ | 3,383  |   | $ | --  |   | $ | 3,403  |
| Proved      properties                                                                                 |                              | 695  |   |   | 25,895  |   |   | --  |   |   | 26,590  |
| Equipment      and      other                                                                          |                              | --  |   |   | 101  |   |   | 2,102  |   |   | 2,203  |
| Total                                                                                                                 | $                                 | 715  |   | $ | 29,379  |   | $ | 2,102  |   | $ | 32,196  |
| Net      Capital Expenditures:                                                                                                                                                                                                                                                                                                                                                                                |                              |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment                                                                                                                                                                                                                                                                                                                                                                                   | $                                 | 498  |   | $ | 6,533  |   | $ | 929  |   | $ | 7,960  |
| Total                                                                                                                 | $                                 | 498  |   | $ | 6,533  |   | $ | 929  |   | $ | 7,960  |

----

|                                                                                                                                                                                                                                                                                                                                                                                                | 2008                              |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                |                              |   | Oilfield |   | Total |
|                                                                                                                                                                                                                                                                                                                                                                                                | Exploration      & Production |   | Services |   | (In      thousands) |
|                                                                                                                                                                                                                                                                                                                                                                                                | U.S.                              |   | Poland |   |   |   |   |
| Operations      summary:                                                                                                                                                                                                                                                                                                                                                                            |                              |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                     | $                                 | 5,695  |   | $ | 7,799  |   | $ | 4,347  |   | $ | 17,841  |
| Lease      operating      expense                                                            |                              | (2,548) |   |   | (893) |   |   | --  |   |   | (3,441) |
| Oilfield      services      costs                                                            |                              | --  |   |   | --  |   |   | (2,751) |   |   | (2,751) |
| Exploration      expense                                                                     |                              | (464) |   |   | (14,925) |   |   | --  |   |   | (15,389) |
| Impairment      expense                                                                      |                              | (3,774) |   |   | (10,972) |   |   | --  |   |   | (14,746) |
| Accretion      expense                                                                       |                              | (56) |   |   | (28) |   |   | --  |   |   | (84) |
| Bad      debt      expense                                                                   |                              | --  |   |   | --  |   |   | (460) |   |   | (460) |
| DD&A      expense                                                                        |                              | (700) |   |   | (529) |   |   | (411) |   |   | (1,640) |
| Operating      income      (loss)                                                            | $                                 | (1,847) |   | $ | (19,548) |   | $ | 725  |   | $ | (20,670) |
| Identifiable      net property and equipment:                                                                                                                                                                                                                                                                                                                                                       |                              |   |   |   |   |   |   |   |   |   |   |
| Unproved      properties                                                                     | $                                 | 20  |   | $ | 2,750  |   | $ | --  |   | $ | 2,770  |
| Proved      properties                                                                       |                              | 261  |   |   | 21,839  |   |   | --  |   |   | 22,100  |
| Equipment      and      other                                                                |                              | --  |   |   | 101  |   |   | 1,772  |   |   | 1,873  |
| Total                                                                                                  | $                                 | 281  |   | $ | 24,690  |   | $ | 1,772  |   | $ | 26,743  |
| Net      Capital Expenditures:                                                                                                                                                                                                                                                                                                                                                                      |                              |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment                                                                                                                                                                                                                                                                                                                                                                         | $                                 | 1,828  |   | $ | 22,811  |   | $ | 1,020  |   | $ | 25,659  |
| Total                                                                                                  | $                                 | 1,828  |   | $ | 22,811  |   | $ | 1,020  |   | $ | 25,659  |

|                                                                                                                                                                                                                                                                                                                                                                                                | 2007                              |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                |                              |   | Oilfield |   | Total |
|                                                                                                                                                                                                                                                                                                                                                                                                | Exploration      & Production |   | Services |   | (In      thousands) |
|                                                                                                                                                                                                                                                                                                                                                                                                | U.S.                              |   | Poland |   |   |   |   |
| Operations      summary:                                                                                                                                                                                                                                                                                                                                                                            |                              |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                     | $                                 | 4,336  |   | $ | 10,567  |   | $ | 3,093  |   | $ | 17,996  |
| Lease      operating      expense                                                            |                              | (2,390) |   |   | (1,148) |   |   | --  |   |   | (3,538) |
| Oilfield      services      costs                                                            |                              | --  |   |   | --  |   |   | (1,998) |   |   | (1,998) |
| Exploration      expense                                                                     |                              | (52) |   |   | (10,572) |   |   | --  |   |   | (10,624) |
| Impairment      expense                                                                      |                              | --  |   |   | (2,299) |   |   | --  |   |   | (2,299) |
| Accretion      expense                                                                       |                              | (50) |   |   | (28) |   |   | --  |   |   | (78) |
| DD&A      expense                                                                        |                              | (742) |   |   | (935) |   |   | (267) |   |   | (1,944) |
| Operating      income      (loss)                                                            | $                                 | 1,102  |   | $ | (4,415) |   | $ | 828  |   | $ | (2,485) |
| Identifiable      net property and equipment:                                                                                                                                                                                                                                                                                                                                                       |                              |   |   |   |   |   |   |   |   |   |   |
| Unproved      properties                                                                     | $                                 | 61  |   | $ | 1,940  |   | $ | --  |   | $ | 2,001  |
| Proved      properties                                                                       |                              | 3,167  |   |   | 15,377  |   |   | --  |   |   | 18,544  |
| Equipment      and      other                                                                |                              | --  |   |   | --  |   |   | 1,178  |   |   | 1,178  |
| Total                                                                                                  | $                                 | 3,228  |   | $ | 17,317  |   | $ | 1,178  |   | $ | 21,723  |
| Net      Capital Expenditures:                                                                                                                                                                                                                                                                                                                                                                      |                              |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment                                                                                                                                                                                                                                                                                                                                                                         | $                                 | 494  |   | $ | 5,092  |   | $ | 893  |   | $ | 6,479  |
| Total                                                                                                  | $                                 | 494  |   | $ | 5,092  |   | $ | 893  |   | $ | 6,479  |

----

|                                                            | 2009                |         | 2008   |   | 2007         |
|-----------------------------------------------------------------|---------------------|--------------|--------|--------|--------------|
|                                                            | (In      thousands) |
| Revenues:                                                       |                |         |   |   |         |   |   |   |
| Reportable      segments                                        | $                   | 14,664  |   | $      | 17,841  |   | $ | 17,996  |
| Non-reportable      segments                                    |                | --      |   |   | --      |   |   | --  |
| Total      revenues                                             | $                   | 14,664  |   | $      | 17,841  |   | $ | 17,996  |
| Net      loss:                                                  |                |         |   |   |         |   |   |   |
| Operating      income (loss), reportable segments               | $                   | 2,057   |   | $      | (20,670)     |   | $ | (2,485) |
| Expense      or (revenue) adjustments:                          |                |         |   |   |         |   |   |   |
| Corporate      DD&A expense                                 |                | (90)         |   |   | (80)         |   |   | (120) |
| General      and administrative costs (G&A)                 |                | (7,257)      |   |   | (7,030)      |   |   | (7,061) |
| Amortization      of deferred compensation (G&A)            |                | (1,693)      |   |   | (2,367)      |   |   | (2,604) |
| Total      net operating loss                                   |                | (6,983)      |   |   | (30,147)     |   |   | (12,270) |
| Non-operating      income:                                      |                |         |   |   |         |   |   |   |
| Interest      income (net of interest expense) and other income |                | (600)        |   |   | (278)        |   |   | 433  |
| Foreign      exchange gain (loss)                               |                | 7,053   |   |   | (24,279)     |   |   |  146  |
| Net      loss                                                   | $                   | (530)        |   | $      | (54,704)     |   | $ | (11,691) |
| Net      property and equipment:                                |                |         |   |   |         |   |   |   |
| Reportable      segments                                        | $                   | 32,196  |   | $      | 26,743  |   | $ | 21,723  |
| Corporate      assets                                           |                | 95      |   |   | 130     |   |   | 162  |
| Net      property and equipment                                 | $                   | 32,291  |   | $      | 26,873  |   | $ | 21,885  |
| Property      and equipment capital expenditures:               |                |         |   |   |         |   |   |   |
| Reportable      segments                                        | $                   | 7,960   |   | $      | 25,659  |   | $ | 6,479  |
| Corporate      assets                                           |                | 27      |   |   | 20      |   |   | 73  |
| Total      property and equipment capital expenditures          | $                   | 7,987   |   | $      | 25,679  |   | $ | 6,552  |

| Note      13:  Quarterly Financial Data (Unaudited) |  |
|---------------------------------------------------------------|--|

|                                                      | Quarter      Ended                            |
|-----------------------------------------------------------|-----------------------------------------------|
|                                                      | December      31                              |   | September      30 |   | June      30 |   | March      31 |
|                                                      | (In      thousands, except per share amounts) |
| 2009:                                                     |                                          |   |   |   |   |   |   |
| Revenues                                                  | $   6,607                 |   | $  3,809  |   | $  2,466  |   | $  1,782  |
| Net      operating income (loss)                          | 2,028                                    |   | (2,649) |   | (2,543) |   | (3,819) |
| Net      income (loss)                                    | 3,336                                    |   | 9,448  |   | 11,090  |   | (24,404) |
| Basic      and diluted net income( loss) per common share | $0.08                                    |   | $    0.22  |   | $    0.26  |   | $   (0.57) |
| 2008:                                                     |                                          |   |   |   |   |   |   |
| Revenues                                                  | $   3,325                 |   | $  5,096  |   | $  5,195  |   | $  4,225  |
| Net      operating loss                                   | (20,666)                                      |   | (3,602) |   | (1,564) |   | (4,315) |
| Net      loss                                             | (45,236)                                      |   | (3,688) |   | (1,488) |   | (4,292) |
| Basic      and diluted net loss per common share          | $    (1.09)               |   | $   (0.09) |   | $  (0.04) |   | $   (0.11) |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information |
|--------|-------------------------------|

| Disclosure      about Oil and Gas Properties and Producing Activities      (Unaudited) |  |
|----------------------------------------------------------------------------------------|--|

|                                                           |   |   | United      States    |   |   | Poland              |   | Total  |
|----------------------------------------------------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|--------|
|                                                           |   |   |                  |   |   | (In      thousands) |   |   |   |
| December      31, 2009:                                        |   |   |                  |   |   |                |   |   |   |
| Proved      properties                                         |   | $      | 4,012            |   | $      | 28,688         |   | $      | 32,700  |
| Unproved      properties                                       |   |   | 20               |   |   | 3,383          |   |   | 3,403  |
| Total      gross properties                                    |   |   | 4,032            |   |   | 32,071         |   |   | 36,103  |
| Less      accumulated depreciation, depletion and amortization |   |   | (3,317)               |   |   | (2,794)             |   |   | (6,111) |
|                                                           |   | $      |   715  |   | $      | 29,277         |   | $      | 29,992  |
| December      31, 2008:                                        |   |   |                  |   |   |                |   |   |   |
| Proved      properties                                         |   | $      | 3,514            |   | $      | 25,086         |   | $      | 28,600  |
| Unproved      properties                                       |   |   | 20               |   |   | 2,750          |   |   | 2,770  |
| Total      gross properties                                    |   |   | 3,534            |   |   | 27,836         |   |   | 31,370  |
| Less      accumulated depreciation, depletion and amortization |   |   | (3,254)               |   |   | (3,247)             |   |   | (6,501) |
|                                                           |   | $      |   280  |   | $      | 24,589         |   | $      | 24,869  |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | United      States |   |   | Poland              |   |   | Total  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |               |   |   | (In      thousands) |   |   |   |
| Year      ended December 31, 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |               |   |   |                |   |   |   |
| Acquisition      of unproved      properties                                                                        |   | $      | --                 |   | $      | 525                 |   | $      | 525    |
| Exploration      costs                                                                                              |   |   | 204                |   |   | 6,411               |   |   | 6,615  |
| Development      costs                                                                                              |   |   | 498                |   |   | 3,722               |   |   | 4,220  |
| Total                                                                                                                         |   | $      | 702                |   | $      | 10,658              |   | $      | 11,360 |
| Year      ended December 31, 2008:                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |               |   |   |                |   |   |   |
| Acquisition      of unproved      properties                                                                        |   | $      | 67                 |   | $      | 1,810               |   | $      | 1,877  |
| Exploration      costs                                                                                              |   |   | 691                |   |   | 35,436              |   |   | 36,127 |
| Development      costs                                                                                              |   |   | 1,760              |   |   | 126                 |   |   | 1,886  |
| Total                                                                                                                         |   | $      | 2,518              |   | $      | 37,372              |   | $      | 39,890 |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information-continued- |
|--------|------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | United      States |   |   | Poland              |   |   | Total  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |               |   |   | (In      thousands) |   |   |   |
| Year      ended December 31, 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |               |   |   |                |   |   |   |
| Acquisition      of unproved      properties                                                                       |   | $      | 61                 |   | $      | 744                 |   | $      | 805    |
| Exploration      costs                                                                                             |   |   | 77                 |   |   | 14,884              |   |   | 14,961 |
| Development      costs                                                                                             |   |   | 434                |   |   | 10                  |   |   | 444    |
| Total                                                                                                                        |   | $      | 572                |   | $      | 15,638              |   | $      | 16,210 |

|                          | 2009   | 2008    | 2007   |
|-------------------------------|--------|---------|--------|
| Impairment      of properties | $1,864 | $14,746 | $2,299 |

|   | Summary      Oil and Gas Reserve Data(Unaudited) |
|--------|--------------------------------------------------|

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information-continued- |
|--------|------------------------------------------|

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information-continued- |
|--------|------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                      | Crude      Oil                    |   | Natural      Gas                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|--------|----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                      | United      States                |   | Poland                           |   | United      States |   | Poland |
|                                                                                                                                                                                                                                                                                                                                                      | (In      thousand barrels of oil) |   | (In      millions of cubic feet) |
|                                                                                                                                                                                                                                                                                                                                                      |                              |   |                             |   |   |   |   |
| December      31,      2009                                                      | 463                |   | --                               |   | -- |   | 20,409 |
| December      31,      2008                                                      | 45                 |   | 47                               |   | -- |   | 7,873 |
| December      31,      2007                                                      | 482                |   | 14                               |   | -- |   | 5,288 |

|                                                                                                                                                                                                                                                                                                                                                       | Crude      Oil                    |   | Natural      Gas                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|--------|----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                       | United      States                |   | Poland                           |   | United      States |   | Poland |
|                                                                                                                                                                                                                                                                                                                                                       | (In      thousand barrels of oil) |   | (In      millions of cubic feet) |
| December      31, 2009:                                                                                                                                                                                                                                                                                                                                    |                              |   |                             |   |   |   |   |
| Beginning      of      year                                                                 | 45                           |   | 47                          |   | -- |   | 45,312  |
| Extensions      or discoveries (1)                                                          | --                           |   | --                          |   | -- |   | 6,333  |
| Revisions      of previous estimates (2)                                                                                                                                                                                                                                                                                                                   | 482                          |   | (47)                             |   | -- |   | (2,095) |
| Production                                                                                  | (64)                              |   | --                          |   | -- |   | (1,882) |
| End      of      year                                                                                 | 463                          |   | --                          |   | -- |   | 47,668  |
| December      31, 2008:                                                                                                                                                                                                                                                                                                                                    |                              |   |                             |   |   |   |   |
| Beginning      of      year                                                                 | 482                          |   | 14                          |   | -- |   | 31,116  |
| Extensions      or discoveries (3)                                                          | --                           |   | --                          |   | -- |   | 11,295  |
| Revisions      of previous estimates (4)                                                                                                                                                                                                                                                                                                                   | (371)                             |   | 37                          |   | -- |   | 4,152  |
| Production                                                                                  | (66)                              |   | (4)                              |   | -- |   | (1,251) |
| End      of      year                                                                                 | 45                           |   | 47                          |   | -- |   | 45,312  |
| December      31, 2007:                                                                                                                                                                                                                                                                                                                                    |                              |   |                             |   |   |   |   |
| Beginning      of      year                                                                 | 382                          |   | 202                         |   | -- |   | 19,264  |
|  Extensions      or discoveries (5)                                                    | --                           |   | --                          |   | -- |   | 17,939  |
| Revisions      of previous estimates (6)                                                                                                                                                                                                                                                                                                                   | 170                          |   | (163)                            |   | -- |   | (4,247) |
| Production                                                                                  | (70)                              |   | (25)                             |   | -- |   | (1,840) |
| End      of      year                                                                                 | 482                          |   | 14                          |   | -- |   | 31,116  |

| (1) | Volume      increase in Poland attributable to new Kromolice-2 and Grabowka wells      drilled or recompleted during 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (2) | Positive      oil revisions in the United States attributable to higher average oil      prices during 2009 compared to year-end 2008 oil      prices.  Negative gas revisions due to the cessation of      production at the Wilga well inPoland. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Volume      increase in Poland attributable to new Kromolice-1 well drilled during      2008. |
|-----|-----------------------------------------------------------------------------------------------|

| (4) | Positive      gas revisions in Poland attributable to Sroda-4 and Zaniemysl-3 wells due      to additional technical data acquired during 2008.  Negative oil      revisions due to lower year-end oil prices in the United      States. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Volume      increase in Poland attributable to new Roszkow-1 well drilled during      2007. |
|-----|---------------------------------------------------------------------------------------------|

| (6) | Negative      oil and gas revisions in Poland attributable to Wilga-4 well due to water      encroachment.  Positive oil revisions due to higher year-end oil      prices in the United States. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information-continued- |
|--------|------------------------------------------|

| Standardized      Measure of Discounted Future Net Cash Flows (“SMOG”) and Changes Therein      Relating to Proved Oil Reserves |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | United      States |   |   | Poland              |         |   | Total         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------------|--------|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |               |   |   | (In      thousands) |         |   |          |
| December      31, 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |               |   |   |                |         |   |          |
| Future      cash      flows                                                                                       |   | $      | 22,050        |   | $      | 283,520        |         | $      | 305,570  |
| Future      production      costs                                                                                 |   |   | (16,334)           |   |   | (26,750)       |         |   | (43,084)      |
| Future      development      costs                                                                                |   |   | --            |   |   | (17,940)       |         |   | (17,940)      |
| Future      income tax      expense                                                                               |   |   | --            |   |   | (33,411)       |         |   | (33,411)      |
| Future      net cash      flows                                                                                   |   |   | 5,716         |   |   | 205,419        |         |   | 211,135  |
| 10%      annual discount for estimated timing of cash flows                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (2,217)            |   |   | (63,095)       |         |   | (65,312)      |
| Discounted      net future cash      flows                                                                        |   | $      | 3,499         |   | $      | 142,324        |         | $      | 145,823  |
| December      31, 2008:                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |               |   |   |                |         |   |          |
| Future      cash      flows                                                                                       |   | $      | 1,103         |   | $      | 239,220        |         | $      | 240,323  |
| Future      production      costs                                                                                 |   |   | (510)              |   |   | (14,310)       |         |   | (14,820)      |
| Future      development      costs                                                                                |   |   | --            |   |   | (16,720)       |         |   | (16,720)      |
| Future      income tax      expense                                                                               |   |   | --            |   |   | (29,270)       |         |   | (29,270)      |
| Future      net cash      flows                                                                                   |   |   | 593           |   |   | 178,920        |         |   | 179,513  |
| 10%      annual discount for estimated timing of cash flows                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (275)              |   |   | (61,670)       |         |   | (61,945)      |
| Discounted      net future cash      flows                                                                        |   | $      | 318           |   | $      | 117,250        |         | $      | 117,568  |
| December      31, 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |               |   |   |                |         |   |          |
| Future      cash      flows                                                                                       |   | $      | 39,056        |   | $      | 179,698        |         | $      | 218,754  |
| Future      production      costs                                                                                 |   |   | (22,459)           |   |   | (15,051)       |    |   | (37,510)      |
| Future      development      costs                                                                                |   |   | --            |   |   | (10,029)            |         |   | (10,029)      |
| Future      income tax      expense                                                                               |   |   | --            |   |   | (16,835)       |         |   | (16,835)      |
| Future      net cash      flows                                                                                   |   |   | 16,597        |   |   | 137,783        |         |   | 154,380  |
| 10%      annual discount for estimated timing of cash flows                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (5,130)            |   |   | (46,282)       |    |   | (51,412)      |
| Discounted      net future cash      flows                                                                        |   | $      | 11,467        |   | $      | 91,501         |         | $      | 102,968  |

----

|   | FX      ENERGY, INC. AND SUBSIDIARIES |
|--------|---------------------------------------|

|   | Supplemental      Information-continued- |
|--------|------------------------------------------|

|                                                                 |   | Year      Ended December 31, |
|----------------------------------------------------------------------|--------|------------------------------|
|                                                                 |   | 2009                         |   | 2008 |   | 2007 |
|                                                                 |   |                         |   |   |   | (In      thousands) |   |   |   |
| SMOG      sources:                                                   |   |                         |   |   |   |   |   |   |   |
| Balance,      beginning of year                                      |   | $                            | 117,568  |   | $ | 102,968  |   | $ | 63,757  |
| Sale      of oil and gas produced, net of production costs           |   |                         | (9,294) |   |   | (10,053) |   |   | (11,364) |
| Net      changes in prices and production costs                      |   |                         | 14,530  |   |   | (9,220) |   |   | 7,866  |
| Acquisition      of minerals in place                                |   |                         |   |   |   | --  |   |   | --  |
| Extensions      and discoveries, net of future costs                 |   |                         | 18,200  |   |   | 27,000  |   |   | 62,343  |
| Changes      in estimated future development costs                   |   |                         | (367) |   |   | (4,940) |   |   | (5,022) |
| Previously      estimated development costs incurred during the year |   |                         | 3,656  |   |   | --  |   |   | 420  |
| Revisions      in previous quantity estimates                        |   |                         | (1,671) |   |   | 10,383  |   |   | (13,561) |
| Accretion      of discount                                           |   |                         | 11,757  |   |   | 10,297  |   |   | 6,376  |
| Net      change in income taxes                                      |   |                         | (3,906) |   |   | (7,941) |   |   | (8,008) |
| Changes      in rates of production and other                        |   |                         | (4,650) |   |   | (926) |   |   | 161  |
| Balance,      end of year                                            |   | $                            | 145,823  |   | $ | 117,568  |   | $ | 102,968  |

----