CALGARY, Alberta, Aug. 22 /PRNewswire-FirstCall/ -- The following was
released on behalf of the Board of FEC Resources Inc., by Larry W. Youell,
President and CEO: FEC RESOURCES INC. ("FEC" or "the company") (OTC
Bulletin Board: FECOF; Frankfurt and Munich: FE8) is pleased to announce
that Forum Energy Plc (of which FEC is the largest shareholder) has entered
into a joint venture agreement with Monte Oro, a Philippine company. The
press release announcing this agreement follows.
20 August 2007
Forum Energy Plc ("Forum" or "the Company")
GSEC101 JOINT VENTURE
Forum is pleased to announce that its wholly owned subsidiary, Forum
(GSEC101) Limited, has entered into Heads of Agreement with Monte Oro
Resources & Energy, Inc. ("Monte Oro"), a private Philippine company
focused in Mining, Oil & Gas and Infrastructure investments in the
Philippines.
Under the terms of the agreement, Monte Oro will acquire a 30%
participating interest in GSEC101. Monte Oro will pay Forum Energy plc the
amount of US$1,500,000 of past costs to the date of the agreement plus its
pro-rata share of costs incurred to the point of payment. Payment will take
place the earlier of six months following award of the Service Contract or
completion of any future farm out transaction.
The participation of Monte Oro in the Service Contract application of
Forum, now pending with the Department of Energy ("DOE"), will entitle the
joint venture to the Filipino Participation Incentive Allowance ("FPIA")
which equates to 7.5% of gross proceeds from any future production. Monte
Oro will assist in obtaining all regulatory approvals for the conversion of
GSEC 101 into a Service Contract.
The assignment of the interest is subject to the approval of the
Department of Energy of the Republic of the Philippines.
Statement from Russell Harvey, Chief Executive:
"We are very pleased to have signed this Agreement with Monte Oro which
we are confident will assist us in a timely conversion of the Service
Contract. This partner brings a wealth of local experience which will
assist in developing Forum's business while providing welcome Philippine
participation in a major local resource. The new Joint Venture will also
qualify for the Filipino Participation Incentive Allowance which enhances
the attractiveness of any future development. I am looking forward to
working closely with our new partner to expedite both the Service Contract
award and activity on the block going-forward."
About Monte Oro Resources & Energy, Inc.
Monte Oro Resources & Energy, Inc. ("Monte Oro") is a privately held
Philippine company formed in 2005 specifically to invest in Mining, Oil &
Gas and Infrastructure investments in the Philippines. The Company is
chaired by Dr. Walter W. Brown who is also Chairman of Philex Mining
Corporation, which is listed on the Philippine Stock Exchange under "PX".
The board of Monte Oro also consists of a number of eminent Filipino
businessmen including Wilson Sy, the former Chairman of the Philippine
Stock Exchange.
The company currently holds interests in both Coal and Oil & Gas
licences in the Philippines.
FEC Resources Inc., holds a diverse portfolio of Oil, Gas, Coal, Gold
and Iron Ore assets located in the Philippines through its shareholdings in
Forum Energy Plc, Lascogon Mining Corporation and Metalore Mining
Corporation. For further information email info@fecresources.com
On behalf of the Board of,
FEC Resources Inc.
"Larry W. Youell"
Larry W. Youell
President and 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 info@FECResources.com or visit the FEC Resources website at
http://www.FECResources.com
SOURCE FEC Resources Inc.
 back to top
Related links:
http://www.FECresources.com/
CONTACT:
Larry Youell of FEC Resources Inc.,
+1-403-290-1676, info@FECResources.com
|
