Forent Energy Ltd.
TSX VENTURE : FEN

Forent Energy Ltd.

September 01, 2010 07:00 ET

Forent Energy Reports Positive Cash Flow & Announces Appointment of John Forgeron to its Board of Directors

CALGARY, ALBERTA--(Marketwire - Sept. 1, 2010) - Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent" or the "Company") is pleased to provide the following update on its Western Canadian and Nova Scotia operations. 

Forent is currently producing approximately 150 bbls of oil per day, primarily as a result of production additions at Mervin, Saskatchewan. Total corporate production is running at approximately 260 bbls of oil equivalent per day, including some 660 mcf/d of natural gas. At Mervin, two oil producing wells were brought on stream at the end of June and three more wells were added in July, with the remaining two re-entry wells to be reactivated in early September. As a result of the recent production additions, the Company's cash flow from operations (net of general and administrative expenses but before capital expenditures) is expected to total approximately $50,000 in August and is forecast to average a similar monthly amount for the balance of the year. In addition to the Mervin recompletions, the Company intends to drill one new well (100% WIO BPO) and re-enter a second well (100% WIO BPO), both in Alberta and targeting oil, before the end of the year.

Progress is being made on the previously announced differential gravity gradiometry survey being conducted by ARKeX Limited on the Alton Block in Nova Scotia. As of the end of August, ARKeX had acquired approximately 53% of the necessary data to complete its survey and is on track to complete the remainder of the survey prior to the middle of October. As a result, Forent should be in a position to understand the basement structure and complete its interpretation of the 200 square mile reef oil fairway before the end of the year.

In a desire to maintain continuity, the Company's board of directors has appointed John Forgeron to fill the vacancy created by the loss of his brother Dennis Forgeron. John is the President of Compass Compression Services Ltd. ("Compass") and has 20 years experience in the oil and gas sector. Compass is a private corporation started in 2001 that designs and manufactures screw and reciprocating compressors for natural gas markets in both Canada and offshore. 

The Company is pleased to have reached its goal of generating positive cash flow from operations prior to the development of its high impact Eastern Canadian shale gas and reef oil assets. Forent holds on-shore oil and natural gas exploration licenses of more than 1.2 million net acres in Nova Scotia. The Company has identified an extensive inventory of oil and natural gas opportunities on its Nova Scotia properties, including conventional Gays River carbonate oil & natural gas targets and a significant Horton shale gas resource play.

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

The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of six thousand cubic feet per barrel (6 mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

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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