Forent Energy Ltd.

Forent Energy Ltd.

January 18, 2010 07:00 ET

Forent Doubles Production in the Fourth Quarter of 2009

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2010) - Forent Energy Ltd. (TSX VENTURE:FEN)

Forent Energy Ltd. ("Forent" or the "Company") is pleased to announce that it had a 100% success rate on three drilling and three work-over operations in late 2009. As a result of the Company's fourth quarter efforts, Forent exited 2009 with production of approximately 140 boe/day or some 100% above the Company's average production in the third quarter of 2009. The Company's focus on increasing western Canadian production will provide the cash flow to continue developments on the high impact eastern Canadian shale gas and reef oil assets.


As indicated in the Company's December 15th press release, Forent was successful in acquiring 640 acres of proven heavy oil-prone lands in central Saskatchewan. The Company is in the planning stages of a multi-well program, in order to reactivate a previously producing oil field that was shut-in during the third quarter of 1998 due to low oil prices and water intrusion in a number of the wells. Prior to being shut-in, individual wells in the pool were producing at a rate of 50 to 80 bbl/day. Production is anticipated to come on stream late in the first quarter of 2010.


Under the joint venture agreement with Silverback Energy Ltd., two successful oil wells were drilled in late 2009. The wells are currently being tied-in with combined gross production of approximately 60 bbl/day (20 bbl/day net; 35% working interest) expected to be on stream in early February. The Company is investigating up to ten low risk step-out locations identified on 3-D seismic to be drilled later this year.


The first well of the Richdale farm-in agreement was completed in the Mannville zone and has resulted in a successful gas well that will be tied-in by the end of February. The well is expected to flow dry sweet gas at a rate of approximately 240 mcf/day (40 boe/day). Follow-up locations are being reviewed.


Forent re-entered and worked over several wells in the fourth quarter resulting in an increase in production before year-end of approximately 80 boe/day, with an additional 35 boe/day anticipated in the first quarter of 2010. The Company has a high working interest in a majority of the wells and will monitor the performance of these wells with the possibility of further recompletions and increased production later in 2010. 


The Company's success in building western Canadian production will assist Forent in its continued exploration and development of the 1.2 million acres of P&NG rights held in Nova Scotia. There has recently been a renewed focus on shale gas opportunities in the Maritimes as a result of several high profile investments in shale opportunities in the United States and the recent addition of a major shale payer to the Atlantic Region. The Company has a 100% interest in a 240 square mile (153,600 acre) shale gas fairway and a 100% interest in a 200 square mile (128,000 acre) basin prone to reef oil deposits.

Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN.V".

The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of six thousand cubic feet per barrel (6 mcf/bbl) of natural gas to barrels of oil equivalence 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 conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

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

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.

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