Forent Energy Ltd.

Forent Energy Ltd.

March 16, 2011 13:44 ET

Forent Energy Announces Encouraging Results of Alberta 3D Seismic Program and Updates for Mervin, Saskatchewan Production and 2011 Nova Scotia Exploration Program

CALGARY, ALBERTA--(Marketwire - March 16, 2011) - Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE:FEN) is pleased to provide the following update on its oil exploration and development efforts in Western Canada and Nova Scotia.

Initial interpretation of the 23 section 3D seismic program in Montgomery, Alberta, acquired in December of last year, is very promising, identifying at least six drilling locations, each with significant exploration and development potential. These locations include multi-zone, three-way structural closures of significant areal extent and others that are potential analogues to the prolific 06-06-12-28 W4 well that has produced to date over 1.4 million barrels of oil and 2.5 Bcf of natural gas. Forent plans to open a data room in mid-April for potential partners to evaluate the drilling locations. Forent holds 100% interest in 22 contiguous sections of land approximately 30 km west of Claresholm, Alberta, which is considered highly prospective due to the fact that almost no seismic information has historically been available and, accordingly, no wells have ever been drilled on the lands.

The Company has recently started to experience increased volumes of produced water at its Mervin, Saskatchewan re-entry project. The field is currently producing about 125 bbl/d of oil, down from approximately 200 bbl/d in December 2010, with revised 2011 Mervin net operating income forecast to be approximately $1,000,000. The Company is estimating first quarter 2011 corporate exit production to be approximately 275 boe/d. As a result, Forent's corporate forecast for 2011 free cash flow, net of general and administrative expenses, is estimated to be positive but minimal in 2011. The Company has taken a number of immediate steps to reduce general and administrative expenses by more than $300,000 per year, which management and the Board believe will allow the Company to advance its major exploration projects in Montgomery, Alberta and Nova Scotia. 

The Company is moving forward with the conventional exploration of the reef prone area of its 750,000 acre onshore Alton Block in Nova Scotia. After finalizing the interpretation of the 2010 gravity gradiometry survey, the Company is very encouraged and pleased to report, that the anomalies identified are significant enough that Forent has decided to reduce the amount of seismic required to image the anomalies and will accelerate the exploration drilling program to the autumn of this year. The Company is currently finalizing the design of a 65 km 2D seismic acquisition program which will image the gravity anomalies and allow for the selection of drilling locations. Forent intends to initiate the permitting associated with the seismic acquisition program in the second quarter of this year, with the goal of initiating drilling operations in the fourth quarter of 2011. 

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

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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