Forum Receives Shareholder Approval on Sterling Transaction

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
Forum Receives Shareholder Approval on Sterling Transaction
    CALGARY, Alberta, May 24 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTC Bulletin Board: FRUEF; Frankfurt/Munich: FE8) ("Forum" or
"The Corporation") announces that through resolutions passed at the
Corporation's EGM held on the 18th May 2005, Forum has received the necessary
shareholder approvals for the transfer of its 66.67% interest in Forum
Exploration Inc. ("FEI") to a newly formed UK company named Forum Energy Plc
("FEP"). Over 82% of the issued and outstanding shares voted at the meeting
and approximately 99.7% of the votes cast were in favor.
    In conjunction with the transfer of the FEI asset to this new company,
Sterling Energy's GSEC101 Gas asset has also been transferred to FEP through
an agreement with the AIM listed UK Company. Sterling is one of the world's
fastest growing Oil and Gas companies and has a current market capitalization
of over US$400m. The GSEC101 license contains the Sampaguita gas discovery
-- the potential gas reserves of the Sampaguita field have been assessed by
PGS reservoir consultants (UK) Limited to be approximately 2.3 TCF (trillion
cubic feet).
    Following these asset transfers and a recently committed pre-IPO financing
for FEP of approximately US$6.2m, Forum holds a 57.9% interest in the new
company whilst Sterling holds 23.2%. FEP will subsequently apply for admission
to the Alternative Investment Market (AIM) of the London Stock Exchange in
conjunction with a second round IPO financing estimated to raise approximately
US$27m of additional funds.
    Potential unrisked reserves estimates for the seven prospects and three
discoveries within the licenses held under the newly formed company (Forum
Energy Plc) total some 900 mmbbls in the oil case or 5,500 BCF in the gas
case. On a risked basis, estimated potential reserves from the three
discoveries sum to 2,330 BCF of gas and estimated risked reserves from
prospects within the licenses sum to 93 mmbbls or 320 BCF in a gas case.
Proven and probable coal reserves are 4.9 million tonnes.
    "This transaction will deliver accelerated growth and value to both the
company and our shareholders. Not only will the FEI assets receive fast-track
development as a result of the considerable investment from London-based
institutional investors, but the company will also additionally benefit from
exposure to the potentially world class GSEC101 asset. FEP has already
received commitments for approximately US$6.2m and an aggressive work program
in the Philippines is underway commencing with a seismic survey of the Central
Tanon prospect offshore SC40. Updates on the operations in the Philippines
will be released on an ongoing basis by FEP and in turn by Forum Energy
Corporation" commented Larry W. Youell, President & CEO
    Forum Energy Corporation's investors will be able to keep up to date with
the operations of Forum Energy PLC through the company's corporate website at
http://www.forumenergy.com. In addition there will be a link to the new website of
Forum Energy PLC in the coming weeks.
    For further information please contact Larry W. Youell, President & CEO,
at (403) 290-1676 or email enquiries@forumenergy.com

     On behalf of the Board of,
     FORUM ENERGY CORPORATION
     "Larry W. Youell"
     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 Larry Youell at (403) 290-1676 e-mail
enquiries@forumenergy.com or visit the Forum Energy website at
http://www.forumenergy.com
SOURCE Forum Energy Corporation
http://www.forumenergy.com
CONTACT:
Larry W. Youell, President & CEO of Forum
Energy Corporation, +1-403-290-1676, or enquiries@forumenergy.com