CALGARY, Alberta, July 29 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTCBB: FRUEF, Frankfurt/Munich: FE8) ("Forum" or "The Company")
announces today that the company's Philippine subsidiary, Forum Exploration,
Inc. is in the process of submitting a formal application to the Philippine
Department of Energy (DOE) for a new Coal Operating Contract (COC).
Exploration drilling is planned by Forum to more definitively identify the
readily mineable coal reserves, which based on present information, are
conservatively estimated to be between 2 to 10 million metric tons
recoverable, with considerable upside potential.
The new license areas are located near the town of Dalaguete, South Cebu,
which is an identified Coal region. The area has a history of mining
activities due to excellent quality steaming coal, bituminous in rank. With
the recent increase in coal prices, many of the old small scale mine workings
in the area are being evaluated for re-entry while other potential mineable
coal bodies are also being evaluated for new COC's on a much larger scale.
The COC being applied for by Forum is made up of four of the most
prospective Coal Blocks in the area, with a total aerial closure of over 2,500
hectares. The Blocks are situated at an elevation of about 600 meters above
sea level and are traversed by a provincial road connecting to the town of
Dalaguete in the east.
Coal seams are observed to occur extensively in the Calagasan and Linut-od
clastic sequences of Late Oligocene and Early Miocene formations which extend
laterally over the subject COC area. Typically, the coal seams are found to
be moderate to steeply dipping at 50-70 degrees and with an average thickness
of 1.5 to 2.0 meters.
STATEMENT FROM DAVID R. ROBINSON, PRESIDENT & CEO
"The market for coal is expanding rapidly and is expected to continue for
the foreseeable future. The Philippines presently consumes in excess of 10
million metric tons/year and local supply amounts to only 2 million metric
tons with 90% supplied by a single producer.
"These new coal license areas give Forum an excellent opportunity to
rapidly become a key producer of high quality steam coal with operations
estimated to commence within the first quarter of next year. In addition the
company is planning to apply for up to 12 additional Coal Blocks in the same
area as they become available through the DOE."
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
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 enquiries@forumenergy.com
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