CALGARY, ALBERTA--(Marketwired - Feb. 11, 2014) -
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) is pleased to report that it has closed on the final tranche of its previously announced non-brokered private placement. Proceeds of $106,000 from the issuance of 1,325,000 common shares at $0.08 per share were received. This closing, combined with the closings on January 31, 2014, and December 31, 2013, provides aggregate gross proceeds of $1,196,000 to the Company.
The proceeds from the private placements will be used to fund crude oil development expenditures on the recently acquired Twining property, battery expansion plans on the Provost facility and administrative expenses of the Corporation. The development program identified will qualify as renounceable exploration expenses. The common shares issued pursuant to the private placements have a four month hold period from the date of issue and remain subject to the final approval of the TSX Venture Exchange.
The Company is also pleased to report that the licence for the next exploration well in the Montgomery area has been approved by the Alberta energy regulator. The well location has been jointly selected by Forent and the JV partner targeting the Second White Specks formation in an area interpreted to be naturally fractured from Forent's proprietary 3D seismic survey. Drilling operations at the well are anticipated to begin on or before February 20, 2014.
In addition, based on the Company's capital spending to date, Forent is pleased to announce that it has met its capital work commitment requirements for the Alton Exploration Licence over the licence period of April 2011 to April 2014. Forent will submit to the Nova Scotia Department of Energy confirmation of the capital spending and a new work commitment for the period April 2014 to April 2017. Forent has the option to hold the Alton Block until April 8, 2020.
Forent has approximately 188,643,215 common shares issued and outstanding which 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.
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.