Forum to Participate in Significant Philippine Gas Asset Through Joint Venture With Sterling Energy Plc

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Forum to Participate in Significant Philippine Gas Asset Through Joint Venture With Sterling Energy Plc
    CALGARY, Alberta, April 25 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTC Bulletin Board: FRUEF, Frankfurt/Munich: FE8) ("Forum" or
"The Company") reports the previously announced Joint Venture transaction has
been completed, subject to formal shareholder approval, through the formation
of a new company named "Forum Energy Plc".
    The new company has been specially created by Forum Energy Corporation and
Sterling Energy Plc to combine and manage the energy assets of both companies
in the Philippines. Both Forum and Sterling will vend their respective
Philippine assets into the new company, in return for pre-negotiated equity
stakes.
    Sterling will transfer to Forum Energy Plc an oil and gas license situated
offshore North West Palawan known as GSEC101 (Reed Bank), located in the South
China Sea, Philippines. The license contains the Sampaguita gas discovery. In
a recent assessment PGS Reservoir Consultants (UK) Limited estimated the
potential gas reserves of the Sampaguita field to be approximately 2.3 TCF
(trillion cubic feet).
    Forum Energy Corporation will transfer to the new company its 66.67%
interest in Forum Exploration Inc., which includes oil and gas license SC40,
onshore and offshore of the northern portion of the island of Cebu,
Philippines, as well as the Central Cebu and Southern Cebu coal operating
contracts (COCs).
    Following the transfers, the new company will apply for admission to the
Alternative Investment Market (AIM) of the London Stock Exchange.  Forum
Energy Plc has already received pre-IPO commitments for 3.4 million pounds
sterling (c. US$6.5 million). The funds have been raised through an
institutional placement brokered by Noble & Company of London & Edinburgh. The
investors will acquire approximately 20% of the new company.
    Following the pre-IPO placement, Forum Energy Corporation's stake in the
new company will be approximately 57%, whilst Sterling will hold an
approximate 23% stake. The pre-IPO placement initially values the new company
at 17 million pounds sterling (c. US$32.5 million).
    "We are delighted that Forum Energy Plc's pre-IPO fundraising efforts have
already resulted in 3.4 million pounds sterling (c. US$6.5 million) of
commitments. The transaction with Sterling Energy will provide Forum Energy
Corporation with the means to fast-track development of its Philippine assets,
through access to the London market along with the additional exposure to
GSEC101, a natural gas prospect with world-class potential.  We are also very
pleased to be working with a company such as Sterling Energy, which has an
excellent reputation and track-record. We are confident that this transaction
will add significant value to the company," commented David Robinson, CEO.
    The transaction is to be finalized on May 18th 2005 following an
Extraordinary General Meeting of Forum Energy Corporation's Shareholders.
Shareholders of record as at April 18th have been invited to attend the
meeting. At the meeting shareholders will also be asked to approve a name
change from Forum Energy Corporation to FEC Resources, Inc.
    Further news will be released as appropriate.

     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
enquiries@forumenergy.com or visit the Forum Energy website at
http://www.forumenergy.com

    Contact:  David Robinson of Forum Energy Corporation, +1-403-290-1676, or
enquiries@forumenergy.com.
SOURCE Forum Energy Corporation
http://www.forumenergy.com
CONTACT:
David Robinson of Forum Energy Corporation,
+1-403-290-1676, or enquiries@forumenergy.com