CALGARY, Alberta, April 7 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTC Bulletin Board: FRUEF; Berlin and Frankfurt: FE8) announced
today, as part of it's objective of diversifying sources of energy from oil
and gas production, that the company has agreed the terms to acquire The
Manguerra Mining and Development Corporation of Cebu, Philippines (Manguerra),
subject to completion of formal due diligence and Department of Energy
approval.
Detailed Technical and Financial feasibility studies on the Manguerra
licenses were conducted on behalf of The Asian Development Bank in 1998 and by
The Xuzhou Coal Mining Bureau of Jiangsu Province, China in 1989. These
studies indicated the Manguerra properties are capable of large-scale
commercially viable coal production, with proven coal reserves of some
7 million tons and an additional probable and possible 12 million tons.
The Manguerra coal licenses cover some 1,000 Hectares and the coal is
classified as a high quality steam coal (11,500 BTU/lb) with low ash content
and sulphur content of 1.6%, based on core samples and coal production.
Manguerra has operated as a family owned business since the late 70's with
production levels in the range 1,000 -- 2,000 tons per month. Forum is
confident that production levels can be increased substantially under the new
ownership and management.
In addition to this initial investment to establish Forum in Coal
production, the company is studying other large coal bearing prospects in
Indonesia and Philippines.
STATEMENT FROM DAVID R. ROBINSON, PRESIDENT & CEO
"I am pleased that we have secured this important asset, which will add
great value to our ever diversifying portfolio. The Manguerra acquisition will
add significant proven reserves to our balance sheet, whilst also assisting in
bringing positive cash flow into the company through the extraction and sale
of coal to local markets initially, and later to regional customers as
production levels are increased."
"Whilst this new and exciting project moves forward, so also does our
development plan for the Maya Gas Field. Forum 1X, 2X and 3X are in the final
stages of assessment, and we are now in consultation with our independent
petroleum engineers who are assisting in the calculation of the probable
reserves of the field, based on our existing data. We therefore anticipate
that Forum Exploration will commence extended production testing on the three
wells within the next quarter."
On behalf of the Board of,
FORUM ENERGY CORPORATION
David R. Robinson
President & CEO
This release contains "forward looking statements" as per Section 21E of
the US Securities and Exchange Act of 1934, as amended. Although the Company
believes that the expectations reflected in such forward looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Management is currently reviewing many options and there is
no assurance that they will not make decisions other than those now
contemplated. The Company is subject to political risks and operational risks
identified in documents filed with the Securities and Exchange Commission,
including changing and depressed oil prices, unsuccessful drilling results,
change of government and political unrest in its main area of operations
For more information please contact David Robinson at 403-290-1676, e-mail
info@forumenergy.com or visit the Forum Energy website at http://www.forumenergy.com.
SOURCE Forum Energy Corporation
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Related links:
http://www.forumenergy.com
CONTACT:
David Robinson of Forum Energy Corporation,
+1-403-290-1676, or info@forumenergy.com
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