CALGARY, Alberta, Nov. 10 /PRNewswire-FirstCall/ -- The following was
released on behalf of the Board of Forum Energy Corporation, by David R.
Robinson, President and CEO:
FORUM ENERGY CORPORATION (OTCBB: FRUEF, Frankfurt/Munich: FE8) ("Forum" or
"The Company") reports that the Board of Directors has approved a revised work
program submitted by the Company's technical advisors, ESG Dubai. The
programme, which is contingent on Forum raising sufficient capital through
equity/debt financing, is an aggressive initiative to develop Forum's existing
proven assets with the expectation of generating production revenues from oil
& gas and coal starting in 2005.
The following is a summary of the expected results of the programme in the
Philippines:
-- Gas production from the Libertad Field, Cebu converted to electrical
power accounts for a steady income of around US$400,000 per year.
-- Coal production from licences in Southern and Central Cebu accounts for
US$1.15m of revenue through 2005/2006 but this conservative estimate is
likely to be exceeded by US$300,000 and with coal production reaching
36,000 tons per year, annual profits should rise to greater than
US$1.3m.
-- Substantial additional revenues (not included in the forecast) can be
expected from the development of the Maya Structure, Northern Cebu,
should the planned Forum 2-X (F2X) test be successful, and also from
oil production resulting from a Farm-in to a producing licence
elsewhere in the Philippines that is being negotiated.
The timing of the revised work programme is as follows:
PETROLEUM -- SERVICE CONTRACT 40
THE LIBERTAD GAS FIELD: With estimated proven reserves of around 1BCF and
the favorable results of a detailed feasibility study now available, Libertad
will be declared commercial shortly following negotiation of a sales contract
with a local Cebu electricity supply company. Libertad is expected to enter
production on this revised timetable by Q305.
The declaration of commerciality will enable Forum to convert SC40 into a
production license with a lifespan of 25 years.
F2-X WELL/MAYA STRUCTURE: The renovation of Forum's Hycalog rig will be
completed in Q404, and the work over and the production testing of F2X will be
conducted in the first half of 2005. It is expected that F2X will prove to be
commercial, however potential revenues from this have not been included in the
2005/2006 revenue forecast presented above.
EXPLORATION: The proposed US$1m investment in 2005 which includes the
acquisition of 250km of offshore seismic and reprocessing of existing seismic
will maintain Forum Exploration's 100% interest in this "low risk / high
potential reserve play." The newly acquired data together with a successful
test of F2X will place Forum in a favorable position to raise additional
capital and/or attract a party to Farm-in and cover the US$4m of outstanding
commitments in SC40.
COAL
Forum's two Coal Operating Contracts are located in Southern and Central
Cebu, in areas with existing infrastructure and a history of mining of
excellent quality bituminous coal. The COC's have combined estimated proven
reserves of greater than 4 million tons with much potential for upside.
Production from both COC's is expected to commence in early 2005 and coal
revenue is expected to steadily rise to at least US$270,000 per quarter by
Q106.
OTHER PROJECTS
Forum is currently negotiating to farm-in to an offshore license with
existing production in the Philippines. Although the farm-in is expected to be
successful the substantial revenues and upside potential have not been
included in the estimates discussed in this release.
Given the move to lower risk producing assets, Forum's management is
presently reviewing and reconsidering its application for the Manila Bay /
Central Luzon License which is regarded as a high risk exploration play.
Further information will be released on this as soon as available.
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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