CALGARY, Alberta, Oct. 23 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTC Bulletin Board: FRUEF) is pleased to announce an onshore gas
discovery in the company's Service Contract 40 block. Multiple hydrocarbon
bearing zones were encountered during the drilling of Forum-2X and confirmed
by well logs.
Open hole testing was conducted to prove the presence of producible
hydrocarbons from the zones of interest, the most promising of which was a
34-foot net sandstone layer from the gross interval of 1,570-1,610ft. Details
of the open hole testing are described in the Press Release by the Philippine
Department of Energy, quoted in full below.
For photo of gas flare during open hole flow test visit
http://www.forumenergy.com/images/flare4.JPG
PRESS RELEASE BY THE PHILIPPINE DEPARTMENT OF ENERGY, OCTOBER 23, 2003.
"Forum Exploration Incorporated, petroleum service contractor of the
Department of Energy under Service Contract 40 over northern Cebu, has
completed an open-hole flow-test of its Forum-2X well in Barangay Maya,
Municipality of Daanbantayan, Cebu. The well was drilled to a total depth of
1,732 ft. The well flowed up to 217,000 standard cubic feet of gas per day
through a half-inch choke with an initial pre-flow pressure of about 700
pounds per square inch (psi) and a flowing pressure of 350 psi. The test has
been temporarily suspended due to the accumulation of sediments inside the
well that restricted the free flow of gas from the reservoir. Further testing
and drilling are needed to confirm whether or not the gas accumulation can be
commercially produced.
The operator is now cleaning the well in preparation for the subsequent
installation of hole casing at the lower section of the well for the conduct
of conventional flow tests over a possible 34-foot net gas-bearing zone once
the necessary equipment arrives.
The drilling of the Forum-2X well was started last September 12, 2003 and
is the second of three wells programmed for drilling this year. It was
drilled adjacent to the first well, Forum-1X. The Forum-1X well which reached
a total depth of 2,000 ft was temporarily suspended after encountering
technical problems and will be re-entered at a future date in order to conduct
tests on the potentially hydrocarbon-bearing upper zones.
A third well, Forum-3X, also known as CMB-5, is planned for drilling using
the company-owned rig in November 2003."
COMMENT FROM LARRY W. YOUELL, PRESIDENT & CEO
"The results so far of exploration well Forum 2X indicate a significant
gas discovery in our onshore area of Northern Cebu, with commercial potential
to contribute to the growing power and energy needs of Cebu.
"Forum-3X well will be drilled to determine the lateral extent of the
reservoirs identified at the Forum-1X and Forum 2X wells. We are optimistic
that the hydrocarbon bearing reservoirs encountered could have the
considerable lateral distribution and volume necessary for a viable oil and
gas production scenario.
"We are obviously satisfied at these preliminary results. However, most
significant, is that the discovery of a thick gas bearing sandstone layer has
also considerably improved the potential of our other prospects to find
recoverable reserves in the other target areas within Forum's SC40 contract."
ABOUT FORUM ENERGY CORPORATION
Forum Energy is an independent energy company listed on the NASDAQ
bulletin board. The company owns 66 2/3% of Forum Exploration Inc., a
privately-held Philippine based energy company with a 100% sole participation
in two blocks known as Service Contract 40 and Service Contract 43.
SC40 covers the Northern half of Cebu Island, and a large section of the
Visayan Sea, whilst the SC43 contract is a 480,000 hectare block covering the
whole of Manila Bay, plus an additional area of land in a strip extending
northwards from the Bay and beyond to the Lincayen Gulf.
In an assessment by PGS reservoir consultants, the potential reserves of
SC40 and SC43 were assessed to be around 1 Billion barrels of Oil and 3.8 TCF
of gas with an upside potential NPV of around US$500m (before taking into
account the CMB gas discovery)
On behalf of the Board of,
FORUM ENERGY CORPORATION
"Larry Youell"
Larry 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 Mr. Larry Youell at 403-290-1676
e-mail info@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:
Larry Youell, +1-403-290-1676, or
info@forumenergy.com
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