Polski Koncern Naftowy ORLEN Spolka Akcyjna ('PKN ORLEN') informs that on 31 December 2015, ORLEN Upstream Sp. z o.o. ('ORLEN Upstream') completed the acquisition of FX Energy, Inc. ('FX Energy').

The acquisition was structured as a tender offer followed by merger. As a result of settlement of the tender offer and a subsequent offering period of the tender offer, direct subsidiary ('SPV') of ORLEN Upstream, acquired 78,21% of FX Energy's outstanding common shares. As of today the FX Energy shareholders represented on the General Meeting gave consent to the merger of FX Energy with SPV. In the effect all the remaining common shares of FX Energy, i.e. the shares which had not been transferred in the tender offer, were cancelled and extinguished and converted into the right to receive cash amounting USD 1,15 (i.e. ca. PLN 4,49) per share. Preferred shares of FX Energy are to be redeemed at their issue price USD 25,00 (i.e. ca. PLN 97,53) per share.

The acquisition was approved by Polish anti-monopoly office. After completion of all required by law processes the merger and related acquisition by ORLEN Upstream of 100% of FX Energy shares is now finally approved and legally effective.

The total amount paid for 100% FX Energy common shares and 100% redeemed shares amounted to approximately USD 83,1 million (i.e. ca. PLN 324,2 million). The total transaction value including the repayment of FX Energy credit facility amounted to USD 125 million (i.e. PLN 487,6 million). Financing of the transaction is covered from PKN ORLEN's cash at hand and available lines.

FX Energy is Salt Lake City, Utah, USA based company engaged in the exploration, development and production of petroleum and natural gas mainly in Poland. FX Energy shares will be delisted from the New York stock exchange, NASDAQ after all regulatory procedures have been completed. More information about FX Energy can be found at www.fxenergy.com.

PKN ORLEN owns 100% of the registered capital of ORLEN Upstream.

All amounts in PLN have been calculated based on the average PLN/USD exchange rate as of 31 December 2015, as stated by the National Bank of Poland.

See also: regulatory announcement no 145/2015 dated 13 October 2015 and regulatory announcement no 170/2015 dated 15 December 2015.