Forest Gate Amends Participation in Saskatchewan Oil & Gas Licenses - Additional Sections Acquired
July 21 2011 - 8:38AM
PR Newswire (Canada)
CALGARY, July 21, 2011 /CNW/ -- SYMBOL & EXCHANGE: FGE-V
CALGARY, July 21, 2011 /CNW Telbec/ - Forest Gate Energy Inc.
(TSXV: FGE) reports that it has amended its participation in the
oil and gas licenses located in areas known as Rangeview, Divide
and Katherine in the south western region of the Province of
Saskatchewan. As a result of this arrangement with Trafina Energy
Ltd., the majority owner and operator of the oil and gas licenses,
Forest Gate will reduce its non-operated ownership from a 20
percent undivided working interest to a 10 percent undivided
working interest in the licenses, which encompass the original
acreage, as well as seven additional sections recently acquired in
south western Saskatchewan. The remaining 90 percent interest is
owned and operated by Trafina Energy. With this arrangement, Forest
Gate's ten percent interest has now been expanded to include
additional Petroleum and Natural Gas Leases as part of an Inclusion
Agreement signed with Trafina on July 1, 2011. These include
seven new sections offsetting the existing land block in south
western Saskatchewan. By reducing its participation and the
associated financial commitments to 10 percent, Forest Gate will
use the savings from the operating costs to pursue other oil and
gas opportunities with the ultimate goal of becoming an operator on
its own properties. "The original acquisition has provided Forest
Gate with a great opportunity to expand its oil and gas interests
in Western Canada and allowed us to make vital new contacts as we
pursue our plans to eventually become an operator," said Michael
Judson, President Chief and Executive Officer of Forest Gate.
"Reducing our capital commitments to 10% now makes it less
demanding in meeting our obligations, as we continue with our
partner to develop the properties. And with the newly acquired
sections, Forest Gate remains poised to achieve its target goals of
production over the next eighteen months." About Forest Gate Forest
Gate Energy Inc. is a publicly listed oil and gas exploration and
production, and non-energy resource company trading on the TSX
Venture Exchange under the symbol FGE. The Company is seeking to
increase shareholder value through participation and development of
energy and other resources in Canada and internationally.
FORWARD-LOOKING STATEMENTS Certain statements regarding Forest
Gate, including management's assessments of future plans and
operations and Forest Gate's anticipated financial performance, may
constitute forward-looking statements under applicable securities
laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Forest Gate's control.
These risks may cause actual financial and operating results,
performance, levels of activity and achievements to differ
materially from those expressed in, or implied by, such
forward-looking statements. Such factors include, but are not
limited to: the impact of general economic conditions in Canada and
the United States; industry conditions including changes in laws
and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced;
competition; the lack of availability of qualified personnel;
fluctuations in commodity prices; the results of exploration and
development drilling and related activities; imprecision in reserve
estimates; the production and growth potential of Forest Gate's
various assets; fluctuations in foreign exchange or interest rates;
the ability to access sufficient capital from internal and external
sources; and obtaining required approvals of regulatory
authorities. Neither TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
the accuracy of this release. To view this news release in HTML
formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/July2011/21/c6756.html p
ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ a
href="mailto:rkramberger@forestgate.ca"urkramberger@forestgate.ca/u/abr/
a href="http://www.forestgate.ca"uwww.forestgate.ca/u/a /p
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