Forent Energy Ltd.
January 17, 2013 - 10:00:00 AM
Forent Energy Announces Sale of Mervin Heavy Oil Property and Montgomery
CALGARY, ALBERTA--(Marketwire - Jan. 17, 2013) - Forent Energy Ltd. (TSX
VENTURE:FEN) ("Forent") or the "Company") is pleased to provide the following
Forent has signed an agreement to sell its Mervin heavy oil property to a
major heavy oil operator for $5.5 million, subject to closing adjustments. The
Mervin disposition has an effective date of December 31, 2012 and is expected
to close at the end of January. The Mervin heavy oil property represents
substantially all of Forent's producing crude oil reserves. At the present
time, Forent has a working capital deficit estimated to be $1,000,000 and no
bank debt. The Company intends to use the proceeds from the sale of its Mervin
property to fund working capital and future corporate growth at its Montgomery
exploration property in southern Alberta and the 514,000 acre Alton Block in
Nova Scotia. The Company has invested more than $11 million in in the
Montgomery and Alton opportunities. Both Montgomery and the Alton Block
present significant growth opportunities for the Company's shareholders.
Forent is very excited about its 29 section Montgomery exploration property in
southern Alberta where the Company's partner, BlackShale Resources, Inc.
("BlackShale"), completed the drilling of the first well on these lands in
late December. The well was drilled and cased to the base of the Mannville
Formation at 3,227 metres. Core data and a full suite of conventional and
specialized petrophysical logs were run over the entire well bore for an
analysis of unconventional and conventional hydrocarbon potential. Additional
evaluation of the core and log data in the vertical well bore will occur over
the next several months by both BlackShale and Forent in order to determine go
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking statements such as the estimates of reserves,
the references to Forent's exploration program and drilling program and
capital expenditures relating to, and timing of, such programs are based on
the opinions and estimates at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those anticipated in
the forward-looking statements. There are uncertainties inherent in
forward-looking information, including factors beyond Forent's control, and no
assurance can be given that the programs will be completed on time, on budget
or at all. In addition, there are numerous uncertainties inherent in
estimating reserves, including many factors beyond Forent's control, and no
assurance can be given that the indicated level of reserves or the recovery
thereof will be realized. Forent undertakes no obligation to update
forward-looking information if circumstances or management's estimates or
opinions should change except as required by law. The reader is cautioned not
to place undue reliance on forward-looking statements. Additional information
identifying risks and uncertainties that could affect financial results is
contained in Forent's filings with Canadian securities regulators, which
filings are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Forent Energy Ltd.
President, CEO & CFO
(403) 262-9444 #203
The TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this press release.