Forent Energy Reports New Farm-Out Agreement and Third Quarter
Financial Results
CALGARY, ALBERTA--(Marketwired - Nov 29, 2013) - Forent Energy
Ltd. (TSX-VENTURE:FEN) ("Forent" or the "Company") is pleased to
announce that it has entered into a new Farm-Out Agreement on it's
extensive Montgomery land holdings, has commenced gas production
testing from the Lower Mannville interval in the Montgomery
01-16-12-29W4M test well and has initiated development and
exploitation activity on its recently acquired producing oil
properties in central Alberta.
Forent has also filed its unaudited condensed Interim Financial
Statements and Management's Discussion & Analysis for the nine
months ended September 30 2013 with applicable securities
regulatory authorities in Canada. In addition, Forent is pleased to
provide the following operational updates in Montgomery, central
Alberta and Alton. Copies of these documents can be accessed under
the Company's profile on the SEDAR website at www.sedar.com and on
the Company's website www.forentenergy.com.
Montgomery, Alberta -
Confirmation of Crude Oil and Natural Gas on Land Block
In the third quarter of 2013, Forent was successful in obtaining
the first oil recovery on the Montgomery block from the 01-16 well.
While the 01-16 wellbore's primary function was to be a test well
to obtain core and reservoir parameters, Forent confirmed the
presence of free oil in the stimulation flow back fluids.
Additional swab testing has occurred on the 01-16 wellbore
resulting in intermittent periods of flowing oil and natural gas.
Over the additional 4 day testing period, cumulative recovery of
formation oil from the well was 160 bbl. Although production from
this interval is encouraging, inflow rates are insufficient to
justify tie-in of the well.
Following the completion of inflow testing of the Second White
Specs interval at 01-16, the perforated interval was isolated in
order to facilitate testing of the Lower Mannville formation sand.
The Lower Mannville was perforated and fracture stimulated, with
resulting clean up flow rates of 13 E3m3/day of natural gas and 0.7
m3/d light oil (460 mcf/d + 4.4 bbl/d). Based on proprietary 3D
seismic, Forent sees multiple Lower Mannville locations across the
Montgomery land block. Post flow analysis will provide additional
information on production potential, associated potential reserves
and anticipated vertical or horizontal development for this
secondary target.
Based on the results of the production tests in Montgomery,
Forent sees significant Second White Specs oil resource potential
and Mannville natural gas resource potential on the Montgomery
block through application of both horizontal drilling and
multi-stage stimulation technologies.
Montgomery, Alberta -
New Farm-Out Agreement Signed
In September 2013, the land earning phase of the farm-out
agreement between Forent and BlackShale Resources on the Montgomery
block expired. Under this agreement, through drilling and
completing the 01-16-012-29W4M well, BlackShale earned a 70%
working interest in Forent's mineral rights from surface to the
base of the Mannville Formation on four (4) contiguous sections of
land.
Subsequent to the expiry of Forent's farm-out agreement with
BlackShale Resources, the Company conducted a process to identify a
partner with strong technical and financial capabilities to
evaluate the Second White Specs potential in an area interpreted to
be naturally fractured. Forent has now entered into a new Farm-Out
Agreement (the "Agreement") with a Calgary based intermediate oil
and gas producer (the "Farmee") to continue exploration on the
balance of these lands. Under the terms of this Agreement, the
Farmee will initially drill an exploration test well, targeting the
fractured Second White Specs zone, in order to earn 70% working
interest in four (4) sections of land. Timing of drilling of the
first well is subject to rig availability, surface accessibility
and regulatory approval, all of which is anticipated to occur in
the first quarter of 2014.
Richard Wade, President and CEO stated, "We are very pleased by
the technical expertise and capabilities of our new partner and
their commitment towards continuing exploration on this relatively
unexplored yet very prospective land block. Based on analog wells
and the confirmation of hydrocarbons in this year's 01-16 well,
Forent is very excited about the possibility of success on this
next Montgomery exploration well."
Central Alberta - Asset
Acquisition and Exploitation
During the third quarter of 2013, the Company identified and
negotiated the purchase of oil weighted assets in central Alberta.
Forent acquired assets in the Provost, Three Hills, and Drumheller
areas, all of which have relatively shallow depth to formation,
high working interest, operatorship and associated facilities. At
the Provost property, Forent has commissioned design engineering to
expand the water handling capability at the central battery which
is expected to double the battery oil production (currently 50
bbl/d oil gross - 37 bbl/d net) and to provide additional capacity
for future drilling. This battery expansion work is expected to be
completed in the first quarter of 2014, pending partner and
regulatory approvals. At the Drumheller property, Forent management
sees potential for 3 (2 net) development horizontal oil well
locations while on the Twining property, Forent has identified an
additional 9 (9 net) development vertical drilling locations. The
Company has purchased 3D seismic over both these properties to
provide geophysical support to further de-risk these drilling
locations. In order to facilitate infill drilling, applications for
down spacing on these two properties have been made to the
regulatory authority.
Central Alberta - Land
Acquisition
Forent participated in a recent crown land sale in central
Alberta and was successful in acquiring 100% interest in 6,684 ha
(~ 26 sections) of land. These lands have 5 year tenure, consist of
mineral rights from surface to basement, have multi-zone potential
and are prospective for both oil and natural gas at less than 1,200
m true vertical depth. They are also in close proximity to some of
Forent's existing assets.
Alton, Nova Scotia -
Project Update
Forent has made an application to the Nova Scotia government for
a reduction of the required work commitment capital to be spent on
the Alton Block over the period of April 2013 to April 2014. This
request was made in light of the ongoing hydraulic fracturing
review being conducted by the Province. The request was submitted
for government review and was expected to be approved in the third
quarter of 2013 however, during the review process a provincial
election was called, resulting in the process being delayed by the
ministry until the election results were finalized. In October, a
new government was elected and the application is now before the
new Minister of Energy for consideration and approval.
Forent continues to seek a joint venture partner for the Alton
Block to accelerate exploration and assist with capital
expenditures. Based on geophysical anomalies, the Company has
identified 8 conventional drilling locations for Gays River reefs.
On the northern portion of the Alton Bock Forent has also
identified significant gas resource potential within the Horton
shale.
Shares of Forent trade on the TSX Venture Exchange under the
symbol "FEN".
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such forward looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and those actual results or developments may
differ materially from those projected in the forward-looking
statements. For more information on the Company, Investors should
review the Company's registered filings which are available at
www.sedar.com.
This news release shall not constitute an offer to sell or
the solicitation of any offer to buy, nor shall there be any sale
of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities offered have
not been and will not be registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United
States absent registration or applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
state securities laws.
Barrel of Oil Equivalent Presentation - Natural gas is
converted to a barrel of oil equivalent ("boe") using six thousand
cubic feet ("mcf") of natural gas equal to one barrel of oil unless
otherwise stated. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of six mcf to one barrel ("bbl")
is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. All boe measurements and conversions
in this report are derived by converting natural gas to oil in the
ratio of six thousand cubic feet of gas to one barrel of oil.
Natural Gas Liquids ("NGL") are reported in barrels
directly.
Neither 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.
Forent Energy Ltd.Richard WadePresident and CEO(403) 262-9444
#211rwade@forentenergy.comwww.forentenergy.com
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