Forent Energy Ltd.
TSX VENTURE : FEN

Forent Energy Ltd.

April 20, 2011 07:00 ET

Forent Energy Announces 2010 Reserve Growth and Operational Update

CALGARY, ALBERTA--(Marketwire - April 20, 2011) - Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent" or the "Company") is pleased to provide the following update on its 2010 year end reserve evaluation and its oil and gas activities in Western Canada and Nova Scotia.

Forent's board of directors has accepted the 2010 year end reserves report, prepared by Sproule Associates Ltd. ("Sproule") and the Company has today filed its Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information; Form 51-101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator; and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure with applicable securities regulators in Canada under National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. Such filings can also be accessed electronically from the SEDAR website at www.sedar.com.

2010 Year-end Reserves

  • Proved Reserves (1P gross) – Forent's 1P reserves increased 30.4% to 400.9 thousand barrels of oil equivalent (Mboe), over the quantities estimated by Sproule as at December 31, 2009.
  • Proved plus Probable Reserves (2P gross) – Forent's 2P reserves increased 19.3% to 535.6 Mboe over the quantities estimated by Sproule as at December 31, 2009.
  • Utilizing a 10% discount rate, before income tax, the value of Proved + Probable Reserves increased 49% to $8.672 million from $5.824 million as at December 31, 2009.
Estimated Net Present Value of Future Net Revenues
The estimated future net present values as at December 31, 2010, presented below, are calculated using Sproule's forecast of future Canadian oil and gas prices.
Summary of Net Present Value of Future Net Revenue Before Income Taxes
($000)
Reserves Category0%5%10%15%20%
Proved
Developed producing5,7155,2484,8664,5484,280
Developed non-producing734565446358293
Undeveloped1,6521,086694416214
Total Proved8,1016,8996,0055,3224,787
Probable4,0843,2392,6672,2601,958
Total Proved and Probable12,18510,1388,6727,5826,745

Summary of Net Present Value of Future Net Revenue After Income Taxes
($000)
Reserves Category0%5%10%15%20%
Proved
Developed producing5,7155,2484,8664,5484,280
Developed non-producing734565446358293
Undeveloped1,6521,086694416214
Total Proved8,1016,8996,0055,3224,787
Probable3,5532,8772,4122,0771,823
Total Proved and Probable11,6549,7768,4187,3996,610

Corporate Operations

The Company has continued to see increased production since February 2011 from its Mervin, Saskatchewan re-entry project. March 2011 production averaged 153 bbl/d bbl/d and the field is currently producing about 160 bbl/d of oil, down from approximately 200 bbl/d in December 2010. The Company estimates its first quarter 2011 corporate exit production to be just under 300 boe/d.

Montgomery

Forent has opened a data room for the review of its Montgomery 3D seismic, in order to identify a partner for the development of its 24 contiguous sections of land, west of Claresholm, AB. The Company is seeking a partner prepared to make a multiple well commitment in order to expedite the development of its large undeveloped land base and provide technical information regarding the second white specs opportunities.

Nova Scotia

The Company will hold an Open House in Stewiacke, Nova Scotia on April 26th in order to review its proposed 65 km 2D seismic program with local residents. Seismic permitting is anticipated to require six weeks to complete, with the acquisition of seismic data planned to commence in July and the drilling of vertical exploration wells early in the fourth quarter of this year.

The Company is embarking on an oil focused work program in 2011 in Nova Scotia. As a result, it has hired Mr. Scott McDonald, as Executive Vice President, based in Nova Scotia. Mr. McDonald has over 34 years' experience in the energy industry, including 10 years in Nova Scotia. He has extensive experience working with industry, governments, the public and the First Nations related to commercial and community affairs, as well as, regulatory and environmental approvals.

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.

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