CalEnergy

In August 2003, CalEnergy Gas closed its agreement with FX Energy to have the right to earn one half of FX Energy's 49 percent interest in part and potentially all of the Fences Concession through a staged farm in. CalEnergy Gas has completed the first stage with the drilling of the successful Zaniemysl #3 well. Initial analysis suggests most likely reserves estimates of 40 Bcf. The Fences joint venture has declared the find commercial. The other participant in the Fences Concession is Polish Oil and Gas Company, which holds a 51 percent interest. Following the success of the Zaniemysl #3 well, CalEnergy Gas has extended its cooperation with FX Energy to the Greater Zaniemysl Area - an area of approximately 175 sq. kilometers that includes and surrounds the Zaniemysl Field. The intention is to exploit the satellite discoveries/structures in the GZA as one common economic unit with the Zaniemysl Field. The Zaniemysl Field received its development approval in March 2005. First gas was exported Oct. 12, 2006.

Resource Development

Producing Gas Fields	Share of Remaining Reserves as of 1/1/08	Current Percentage Working Interest

Greater Zaniemysl Area	9 Bcf	24.5%

Yolla	45 PJ	15%

Victor	5 Bcf	5%

Gas Projects in Commissioning	Share of Reserves	Size in Square Kilometers (Net)	Current Percentage Working Interest

Thylacine/Geographe	45 PJ	133	5%

Gas Projects in Development	Permit Status	Current Percentage Working Interest

Perth Basin	Drilling 2009	50%
Otway Basin	Evaluation - Drilling 2009	5%
Bass Basin	Evaluation	18.5%
Block 48/1a	Evaluation	55%