CALGARY, Alberta, Dec. 20 /PRNewswire-FirstCall/ -- FEC RESOURCES INC.
(OTC Bulletin Board: FECOF) ("FEC" or "the company") is pleased as the year
draws to a close to provide an update on its three major assets.
FORUM ENERGY PLC ("FEP")
On September 26, 2006 FEP announced a significant natural gas
discovery. Results from the 3D seismic programme over GSEC101 and its
interpretation performed by independent consultants, Count Geophysics
Limited, confirmed a minimum of 3.4 TCF proven gas in place from sands
tested in the 3 wells drilled to-date and the extension of the structure to
a possible closure of 290 sq. km giving an upside reserves in these sands
alone of 10 TCF. Additional untested sands, which are known to contain gas,
could double this figure. The block also contains 8 additional leads which
require further work that has the potential to add a further 20 TCF in
aggregate. Forum is in the process of converting the licence to a service
contract and further news is expected in the near-term. FEP also continues
to develop its other Oil, Gas and Coal Mining Assets within the region.
LASCOGAN MINING CORPORATION - MPSA 148
We are pleased to advise that FEC has now fulfilled its commitment to
acquire our 40% interest in the Philippine mining project entered into with
Philex Gold, Inc. (TSX Venture: PGI) ("PGI"). As previously reported
MPSA148 comprises of 2306 Hectares in the province of Surigao, Mindanao The
initial stage of the work program is now complete and FEC'c funding
commitment of US$1,000,000 for exploration has been paid in full.
Following the drilling and assay testing carried out to date, one area
has been specifically identified as being worth further exploration in
order to define its merits. It is anticipated to proceed with this further
exploration once the Philippine rainy season ends in February and the
weather has improved.
METALORE MINING ("MMC")
Metalore Mining Corporation in which FEC have a 35% holding has been
issued with a temporary suspension order relating to all mining operations.
The suspension order was issued by the Government for all mining projects
in the area despite Metalore being in compliance with local and national
environmental regulations. Prior to suspension, the area had been deluged
by numerous typhoons in what has been a particularly bad season of weather,
thus rendering mining impossible for any prolonged period. The merits of
FEC continuing to have an ongoing involvement in this operation are
therefore being evaluated.
FINANCIAL
FEC has recently sold 770,000 shares of FEP in order that we might
retire an outstanding debenture. This sale has reduced our shareholding in
FEP to 32.31%, and has resulted in us paying down the premium and
outstanding interest associated with this debenture. The debenture now is
simply a loan of $485,000 outstanding, accruing interest at 12% p.a. It is
our intention to pay the outstanding balance off in the near future.
CEO STATEMENT
"FEC has made significant progress this year. Our main investment in
Forum Energy Plc has shown a considerable upside with the Gas discovery at
GSEC101 and we look forward to releasing further news on this in 2007 once
the development plans for this asset are released by Forum Energy.
"The joint venture at MPSA148 has also yielded encouraging results with
the recent drilling program confirming the presence of gold resources
within the block, and approximate 200,000 ounces of gold discovered to
date. This is less than initially inferred as according to the analysis of
the data provided from the work program conducted on the property, the
concentration was not continuous as originally thought. We have also just
begun mapping of parcel #2 at Nabago at the very north of MPSA 148 based on
some promising preliminary findings. The board has resolved to continue
with the exploration in order to establish the potential reserves.
"Metalore Mining continues to experience operational difficulties due
to local Government sanctions and extreme weather. We are therefore
evaluating the situation and will report further in the New Year.
"Overall we believe 2007 will be a successful year for FEC and our
shareholders."
To learn more about the Oil, Gas and Coal assets of Forum Energy Plc
visit their website at http://www.forumenergyPLC.com .
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.
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