CALGARY, ALBERTA--(Marketwire - Aug. 30, 2012) - Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE:FEN) is pleased to announce that the Company has entered into a farm-out agreement ("Agreement") for certain of its Montgomery, Alberta exploration assets. The Forent Montgomery assets include 29 contiguous sections of highly prospective land along with proprietary 3-D seismic.
Forent has completed a definitive farm-out agreement with BlackShale Resources, Inc. ("BlackShale"), a wholly owned subsidiary of Houston based Kerogen Exploration LLC. BlackShale is a private company that specializes in identifying and exploiting unconventional oil and gas opportunities in Canada. After extensive assessment of regional opportunities in Western Canada, BlackShale chose Forent's Montgomery lands as one of its initial projects for light oil exploration.
Under the terms of the Agreement, BlackShale will fund the cost to drill and complete a vertical test well to the base of the Mannville Formation, a depth of approximately 3,100 metres, to earn a 70% interest in all PNG rights to the base of the deepest formation penetrated in four contiguous sections of land, while Forent will retain 30% of its pre-farmout interest in these four sections.
Upon drilling the first well and having evaluated all of the formations in the borehole, BlackShale may exercise an option to drill additional vertical or horizontal wells under similar earning conditions.
As a critical part of the execution of the Agreement, the parties have jointly interpreted Forent's proprietary 25 section 3D seismic information and identified the first drilling location, with BlackShale as operator. BlackShale expects to spud the first well prior the end of the year.
Forent is very excited with its new partner for the development of its Montgomery asset and the technical and financial capacities BlackShale brings to the exploration program.
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
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 www.sedar.com.
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.