CALGARY, ALBERTA--(Marketwired - Dec. 13, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE:FEN) announces that it plans to issue and sell on a non‐brokered private placement basis (the "Private Placement") up to 10,000,000 common shares of the Company to be issued on a flow‐through basis (the "Flow‐Through Shares") at a price of $0.10 per common share for total consideration of $1,000,000. Forent will renounce to subscribers of the Flow‐Through Shares, effective on or before December 31, 2013, Canadian Exploration Expense in an amount equal to the aggregate gross proceeds.
The Funds will be used for crude oil development expenditures, which will qualify as renounceable exploration expenses, on the central Alberta properties that were acquired in October 2013. Forent's near term capital program of $4.6 million is expected to add production of approximately 190 bopd and add more than $10.0 million in net asset value. The Company's high impact Montgomery #2 well is planned for Q1 2014 at 100% partner expense (FEN will retain 30 % working interest post completion). For additional information on these properties please see Forent's updated corporate presentation which is available at www.forentenergy.com.
W. Brett Wilson, the Company's Chairman, owns directly, indirectly and through affiliates, approximately 22.3% of the common shares of Forent and has indicated he will subscribe for at least his pro rata share of the Flow‐Through Shares being offered. Other insiders of the Company have already indicated they will subscribe for at least $110,000 in the Private Placement.
The Private Placement is subject to applicable regulatory and TSX Venture Exchange approval and completion of definitive documentation. Common shares issued under the Private Placement will be restricted from resale for a four month period under Canadian securities laws. Closing of the Private Placement is expected to occur on or about December 23, 2013.
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
ADVISORY: Certain information in this news release, including the anticipated closing of the Private Placement, the use of the proceeds to incur Canadian Exploration Expenses, and the drilling of wells at the Company's Wayne, Twinning and Montgomery properties, constitute forward‐looking statements under applicable securities laws. Although Forent believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Forent can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Forent is not able to obtain the necessary stock exchange approval on the timeline it has planned. The Private Placement will not be completed at all if this approval is not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The forward‐looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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 RELEASE.