Forent Energy Ltd.

Forent Energy Ltd.

December 15, 2009 07:00 ET

Forent Energy Ltd. Executes New Oil Joint Venture and Provides Update on 2009 Drill Program

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) - Forent Energy Ltd. (TSX VENTURE:FEN) -

Forent Energy Ltd. ("Forent" or the "Company") is pleased to announce that it has entered into a joint venture agreement with Silverback Energy Ltd. to partner in a multi-well oil exploration program. Under the terms of this agreement, the Company will commit to drill and case two wells to earn an interest in almost 1,000 acres of oil prone lands in Central Alberta. With this most recent joint venture, the Company's third since September 1, 2009, Forent is building a diverse and extensive oil prospect inventory to pursue over the coming year.

Forent has made its initial elections under these agreements and has kicked off a multi-well drill program with the first three wells to be completed before year end.


The first well in this program was spud on November 28, 2009 in the Richdale area of south central Alberta. The well was drilled to a depth of 1,141 metres where it encountered a Glauconitic channel with 3.5 metres of net pay. The well is planned to be completed and tested by the end of December. The company has a 100% interest in this well before payout subject to a 10% gross royalty.


The next wells to be drilled as part of the 2009 program will kick off on December 17th with the spud of the first of two Ellerslie tests at a depth of 1000 meters. The Ellerslie formation demonstrates extensive oil production in the area with offsetting production within 500 metres of these locations. Upon success in establishing economic rates from these first two wells, there are a number of low risk step out locations identified on 3-D seismic that will be pursued in 2010.


In addition to the Company's drilling program, Forent is pursuing re-entry candidates that can bring on shut-in production from existing wells. The first such effort was kicked off in Caroline, Alberta where a shut-in well has been targeted for a work-over in an attempt to bring it back on production. The company has a 100% interest in this well.


The company was recently successful in acquiring a section of known oil lands in Central Saskatchewan. The Company's exploration group is reviewing the opportunities to re-enter and drill new wells on these lands to bring on production in early 2010.

In light of these recent joint ventures and the significant opportunities they present, the Company has re-evaluated its farm-in with Black Sea Oil & Gas Ltd. and has determined it is not in Forent's interest to pursue this venture.

The company plans to complete the December drills and place them on test production by year-end, with a plan to install permanent production facilities early in the new year. The development and exploration programs described above are sufficient to exceed the company's 2008 flow through obligations. The focus on increasing the company's oil production permits the continued exploration and development of the 1.2 million acres of P&NG rights held in Nova Scotia, an area that has recently seen a new successful shale gas development and the entrance of a major shale payer to the region.

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

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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