Forent Energy Announces Sale of Mervin Heavy Oil Property and Montgomery Update
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CALGARY, ALBERTA, Jan 17 (MARKET WIRE) -- Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent") or the "Company") is pleased to provide the following corporate update. 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 forward plans. 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. 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. Contacts: Forent Energy Ltd. Tom Lester President, CEO & CFO (403) 262-9444 #203 email@example.com www.forentenergy.com Copyright 2013, Market Wire, All rights reserved. -0-