CALGARY, Alberta, Aug. 28 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (FEC) (OTC Bulletin Board: FRUEF) is pleased to announce that its
subsidiary, Forum Exploration Inc. (FEI) has finalized the terms of the
Service Contract Application for the Manila Bay -- West Central Luzon block
(Manila Bay) last week with the Government of the Republic of the Philippines.
The contract will be assigned as Service Contract 43 (SC43) and covers some
480,000 hectares including Manila Bay and a portion of the contiguous landward
area of Luzon Island.
STATEMENT FROM LARRY YOUELL, PRESIDENT & CEO
"We are delighted to have the Manila Bay -- West Central Luzon block
contract at a time when the first high profile public contracting round (PCR-
1) is taking place in the Philippines. The whole industry is generally being
made more transparent and we are extremely fortunate to have finalized the
terms of the contract with the government without the necessity of first going
through the GSEC process, thus saving time and money.
"Our work commitment on this area will begin this fall, when we expect to
commence shooting new seismic over the Manila Bay offshore prospect. We will
be acquiring 250KM of High Resolution 2-D seismic, and depending on the
results, anticipate drilling a well. The two main offshore prospects in the
Manila Bay area, known as prospects A and B are estimated to contain at least
0.7 TCF of gas. Due to the close proximity of a developing gas market and the
shallow water depth (around 75feet) in Manila Bay, a discovery of gas in
commercial quantities would be readily developed, particularly in view of the
technology available to exploit gas reserves in such locations.
"Furthermore, PGS Reservoir Consultants (UK) has suggested that the
shooting of further seismic could identify additional prospects within the
Manila Bay area."
ABOUT MANILA BAY
Manila Bay lies at the southern end of the Central Luzon Trough. The
Trough is bounded to the east by the Sierra Madre volcanic arc, to the west by
the Zambales ophiolite complex, and to the south by a major strike-slip fault
separating it from the Mindoro-Palawan area.
The main target zone is the Malo-Pungatan Formation of the Late Miocene to
Early Pliocene age. The formation is composed of shelfal carbonates shallowing
upwards as a sequence of detrital carbonates with coral fragments. Fracturing
may play an important role in enhancing reservoir properties in the carbonate
facies. The presence of platform carbonates in the area of the Manila Bay was
confirmed by the Manila Bay-1, Manila Bay-1AST and Redrill wells. Gas was
observed within the carbonates. A drill stem test conducted was assessed by
PGS to be invalid.
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 Mr. Riaz Sumar at (403) 290-1676 e-mail
info@forumenergy.com web site http://www.forumenergy.com
SOURCE FORUM ENERGY CORPORATION
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Related links:
http://www.forumenergy.com
CONTACT:
Riaz Sumar of FORUM ENERGY CORPORATION,
+1-403-290-1676 or info@forumenergy.com
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