Forte Energy NL
LSE : FTE

March 16, 2009 04:20 ET

Half-yearly report

                                                       1




                                                                                                               
                                                FORTE ENERGY NL
                                                       
                                                       
                                         (Formerly Murchison United NL)
                                                       
                                              ABN 59 009 087 852
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                          HALF-YEAR FINANCIAL REPORT
                                                       
                                                       
                                               31 DECEMBER 2008
                                                       
                                                       
                                                       
                                                       
                                                Forte Energy NL
                                               36 Outram Street
                                              West Perth WA 6005
                                                   AUSTRALIA
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
Murchison?s Nominated Advisor for the AIM market is RFC Corporate Finance Ltd.
Contact: Stuart Laing, Ph: +618 9480 2506

                                                       
                                                   CONTENTS







        Directors' Report                                                                                2

        Balance Sheet                                                                                    4

        Income Statement                                                                                 5

        Statement of Changes in Equity                                                                   6

        Cash Flow Statement                                                                              7

        Notes to the Half-Year Financial Report                                                          8

        Directors' Declaration                                                                          15

        Auditor's Independence Declaration                                                              16

        Independent Review Report                                                                       17





                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                               DIRECTORS' REPORT
                                                       

Your directors submit their report for the half-year ended 31 December 2008.

Directors

The  names of the Company's Directors in office during the half-year and until the date of this report  are  as
below.  Directors were in office for this entire period unless otherwise stated.

Glenn Robert Featherby - Chairman
Lady Barbara Judge (Appointed 18 July 2008) - Deputy Chairman
Mark David Reilly - Managing Director
Christopher David Grannell - Non-executive Director
Bosse Gustafsson - Technical Director

Review and Results of Operations

The Company reported a loss for the half-year of $984,516 (2007: $628,928).

The principal activity of the Company during the reporting period was the exploration for mineral resources.

The  Company  continues  to aggressively progress its uranium exploration projects in  Mauritania  and  Guinea,
evaluate  new  energy-related asset opportunities and pursue programmes to add value to its  Australian  copper
project interests in Cloncurry, Queensland and Maroochydore, Western Australia. Activities during the reporting
period included:

Uranium Exploration - Mauritania

    *   French-based multinational industrial and nuclear energy group Areva NC acquired an initial 5% stake
        in Forte Energy, raising A$2,698,732, under the Cooperation Agreement announced in June 2008 in relation to the
        Company's Mauritanian projects.

    *   Areva increased its stake in Forte Energy to 14.5% following the issue of further shares under the
        Cooperation Agreement in return for access to its extensive Mauritanian geological database and the provision
        of technical support.

    *   Work to combine the Mauritanian geological databases of the two companies has been completed and joint
        planning and review meetings held.

    *   Work  on detailed geophysical ground surveys commenced in February 2009 at Bir En Nar and  at  two
        locations near Bir Moghrein. Results from these surveys will help to guide a core drilling programme to be
        completed during 2009 aimed at delineating a substantial uranium resource.

Uranium Exploration - Guinea

    *   Extended resource diamond drilling programme commenced in October 2008 at Firawa uranium prospect was
        completed in January 2009. A down-hole radiometric logging programme is currently underway.

    *   The above Firawa drilling programme was increased from 4,000m to 5,850m following receipt of positive
        initial results from handheld scintillometer readings from core samples.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         DIRECTORS' REPORT (Continued)
                                                       

    *   Calculation  of  an initial JORC code compliant resource estimate for Firawa uranium  prospect  is
        expected shortly.

    *   The Company completed its maiden core drilling programme of 1,000m at the Bohoduo Prospect during the
        reporting period.

Corporate

    *   The  Company  changed  its name from Murchison United NL to Forte Energy NL following  shareholder
        approval on 25 November 2008.

    *   Lady Barbara Judge was appointed to the board in July 2008 as Non-Executive Deputy Chairman.  Lady
        Judge is a US-trained lawyer and highly experienced international executive, and is currently chairman of the
        UK Atomic Energy Authority.

Events subsequent to balance date

Apart from other events to the extent to which are described elsewhere in this Director's Report, there has not
arisen  in  the  interval  between  the end of the financial period and the  date  of  this  report  any  item,
transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to
effect:

    i.      the Company's operations in future financial years; or
    ii.     the results of those operations in future financial years; or
    iii.    the Company's state of affairs in future financial years.

Dividends

No dividend has been paid during the period (2007:  $ nil).

AUDITOR'S INDEPENDENCE DECLARATION

A  copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act is set
out on page 16 and forms part of this report.

Signed in accordance with a resolution of the directors.






Mark Reilly
Managing Director

Perth 16 March 2009
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                                 BALANCE SHEET
                                            AS AT 31 DECEMBER 2008
                                                       


                                                    Notes      31 December 2008            30 June 2008
                                                                       $                        $
 ASSETS                                                                                                  
 Current Assets                                                                                          
 Cash and cash equivalents                            6                 4,213,285               3,653,480
 Trade and other receivables                                              101,191                   7,950
 Prepayments                                                               26,847                  38,227
                                                                        4,341,323               3,699,657
 Non-current assets classified as held for sale       7                 1,656,163                       -
 Total Current Assets                                                   5,997,486               3,699,657
                                                                                                         
 Non-current assets                                                                                      
 Available-for-sale investments                                            21,932                  27,760
 Exploration and evaluation expenditure               9                 8,058,942               4,361,305
 Plant and equipment                                                      124,604                 144,498
 Total Non-Current Assets                                               8,205,478               4,533,563
                                                                                                         
 TOTAL ASSETS                                                          14,202,964               8,233,220
                                                                                                         
 LIABILITIES                                                                                             
 Current Liabilities                                                                                     
 Trade and other payables                                               2,223,781                 816,503
 Provisions                                                                13,385                  62,234
                                                                        2,237,166                 878,737
 Liabilities associated with assets held for sale     7                   527,000                       -
 Total Current Liabilities                                              2,764,166                 878,737
                                                                                                         
 TOTAL LIABILITIES                                                      2,764,166                 878,737
                                                                                                         
 NET ASSETS                                                            11,438,798               7,354,483
                                                                                                         
 EQUITY                                                                                                  
 Contributed equity                                   11               55,778,498              50,871,819
 Reserves                                                               1,772,104               1,609,952
 Accumulated losses                                                  (46,111,804)            (45,127,288)
                                                                                                         
 TOTAL EQUITY                                                          11,438,798               7,354,483
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                                       
                                               INCOME STATEMENT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
                                                       
                                                       
                                                            Notes          2008                  2007
                                                                            $                     $
                                                                                                          
                                                                                                          
 Revenue                                                       4             199,079               193,856
 Administration expenses                                       5         (1,222,070)             (832,759)
 Settlement of Renison Bell Ltd creditors                                     38,475                 9,975
                                                                                                          
 Loss before income tax                                                    (984,516)             (628,928)
 Income tax expense                                                                -                     -
                                                                                                          
 Loss after tax                                                            (984,516)             (628,928)
                                                                                                          
                                                                                                          
 Net loss attributable to members of the Company                           (984,516)             (628,928)
                                                                                                          
 
 Loss per share for loss attributable to the ordinary                                                     
 equity holders of the Company (cents per share)
 - basic loss per share                                                       (0.25)                (0.17)
 - diluted loss per share                                                     (0.25)                (0.17)
                                                                                                          
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                        STATEMENT OF CHANGES IN EQUITY
                                   FOR THE HALF -YEAR ENDED 31 DECEMBER 2008
                                                       
                
                                  Issued        Accumulated     Net unrealised       Equity          Total
                                  capital         losses         gains/(loss)       benefits         equity
                                                                   reserve          reserve             
                                     $               $                $                $               $
                                                                                                        
 At 1 July 2008                   50,871,819     (45,127,288)             4,280      1,605,672        7,354,483
 Net gain/(loss) on                                                                                            
 available-for-sale                                                                              
 investments                               -                -            (5,828)            -            (5,828)
 Total income/(expense) for                                                                                    
 the period recognised                                                                                         
 directly in equity                                                                                            
                                           -                -            (5,828)            -            (5,828)
 Loss for the period                       -        (984,516)                 -             -          (984,516)
 Total income/(expense) for                                                                                    
 the period                                -        (984,516)            (5,828)            -          (990,344)
 Equity transactions:                                                                                          
 Share-based payment                       -                -                 -         167,980         167,980
 Issue of ordinary shares          4,922,022                -                 -              -        4,922,022
 Transaction costs                   (15,343)               -                 -              -          (15,343)
 At 31 December 2008              55,778,498     (46,111,804)           (1,548)      1,773,652       11,438,798
                                                       
                                                       
                                                       
                                  Issued        Accumulated     Net unrealised       Equity          Total
                                  capital         losses         gains/(loss)       benefits         equity
                                                                   reserve          reserve             
                                     $               $                $                $               $
                                                                                                        
 At 1 July 2007                   48,104,178     (43,636,683)            29,352      1,372,041        5,868,888
 Net gain/(loss) on                                                                                            
 available-for-sale                                                                              
 investments                               -                -           (14,370)            -           (14,370)
 Total income/(expense) for                                                                                    
 the period recognised                                                                                         
 directly in equity                                                                                            
                                           -                -           (14,370)            -           (14,370)
 Loss for the period                       -        (628,928)                 -             -          (628,928)
 Total income/(expense) for                                                                                    
 the period                                -        (628,928)           (14,370)            -          (643,298)
 Equity transactions:                                                                                          
 Share-based payment                       -                -                 -          34,935          34,935
 Issue of ordinary shares          2,953,760                -                 -              -        2,953,760
 Transaction costs                  (186,119)               -                 -              -         (186,119)
 At 31 December 2007              50,871,819     (44,265,611)            14,982      1,406,976        8,028,166
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                              CASH FLOW STATEMENT
                                   FOR THE HALF -YEAR ENDED 31 DECEMBER 2008

                                                                           2008                  2007
                                                                            $                     $
                                                                                                           
Cash flows from operating activities

Payments to suppliers and employees                                        (1,101,925)             (813,958)
Interest and rent received                                                    100,018               190,196
                                                                                                           
Net cash flows used in operating activities                                (1,001,907)             (623,762)
                                                                                                           
Cash flows from investing activities                                                                       

Proceeds from sale of equipment                                                 1,091                     -
Payment for purchase of equipment                                              (6,370)              (36,155)
Payment for exploration and evaluation expenditure                         (1,087,449)             (972,350)
                                                                                                            
Net cash flows used in investing activities                                (1,092,728)           (1,008,505)
                                                                                                           
Cash flows from financing activities                                                                       

Proceeds from issue of shares                                               2,698,732             2,754,892
Transaction costs relating to issue of shares                                  (8,135)             (236,768)
                                                                                                           
Net cash flows from investing activities                                    2,690,597             2,518,124
                                                                                                           
Net increase in cash and cash equivalents                                     595,962               885,857
Cash and cash equivalents at beginning of the period                        3,653,480             4,067,176
Effects of exchange rate changes on cash and cash equivalents                (36,157)                     -
                                                                                                           
Cash and cash equivalents at end of the financial period                    4,213,285             4,953,033
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                    NOTES TO THE HALF-YEAR FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

1.    CORPORATE INFORMATION

      The  financial  report of Forte Energy NL ("the Company") for the half-year ended 31  December  2008  was
      authorised for issue in accordance with a resolution of the directors on 13 March 2009.

      Forte  Energy  NL  is  a company limited by shares incorporated in Australia, whose shares  are  publicly
      traded  on  the  Australian Stock Exchange (ASX code "FTE"), and on the AIM Board  of  the  London  Stock
      Exchange.

      The  nature  of  operations  and  principal  activities of the  Company  during  the  half-year  was  the
      exploration  for  minerals.  There have been no significant changes in the  nature  of  these  activities
      during the half-year.

2.    BASIS OF PREPARATION AND ACCOUNTING POLICIES

(a)   Basis of Preparation

      The half-year financial report is a general purpose condensed financial report, which has been prepared
      in  accordance  with  the  requirements of the Corporations Act 2001  and  AASB  134  "Interim  Financial
      Reporting".

      The  half-year  financial  report does not include all notes of the type  normally  included  within  the
      annual  financial  report  and therefore cannot be expected to provide as full an  understanding  of  the
      financial  performance, financial position and financing and investing activities of the Company  as  the
      full financial report.
      
      The  half-year financial report should be read in conjunction with the annual financial report  of  Forte
      Energy NL (Murchison United NL) as at 30 June 2008.
      
      It  is  also  recommended  that the half-year financial report be considered  together  with  any  public
      announcements made by Forte Energy NL during the half-year ended 31 December 2008 in accordance with  the
      continuous  disclosure obligations arising under the Corporations Act 2001 and Australian Stock  Exchange
      Listing Rules.
      
      The half-year financial report has been prepared on a historical cost basis, except for available-for-
      sale investments, which have been measured at fair value.

      The financial report is presented in Australian dollars ($).

      For  the  purpose  of preparing the half-year financial report, the half-year has been  treated  as  a
      discrete reporting period.

      Apart  from  the  changes in accounting policy noted in 2 (c) below, the half year financial  report  has
      been  prepared using the same accounting policies as used in the annual financial statement for the  year
      ended 30 June 2008.


                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008


(b)   Going Concern

      The  company  recorded a loss of $984,516 for the six months ended 31 December 2008 and has  net  current
      assets  of $3,233,320 as at 31 December 2008. The company's cash flows show that the company will require
      further  funds  to  enable it to continue to meet its ongoing administrative and exploration  commitments
      for at least twelve months from the date of signing these financial statements.
      
      The  financial  report  has  been  prepared on the basis that  the  company  can  continue  to  meet  its
      commitments  as  and  when  they  fall due and can therefore continue normal  activities,  including  the
      settlement of liabilities and the realisation of assets in the ordinary course of business.
      
      In arriving at this position the directors have considered the following pertinent matters:
      *    the Directors of the company are actively pursuing further funding initiatives to provide additional
           working capital, including the sale of non-core assets; and
      *    if required, the Directors of the company believe that they will be able to raise additional working
           capital through equity issues.
      
      The  directors  believe that at the date of the signing of the financial statements there are  reasonable
      grounds  to believe that, having regard to the matters set out above, the company will be able  to  raise
      sufficient  funds  to meet their obligations as and when they fall due and continue to proceed  with  the
      company's strategic objectives beyond the currently committed expenditure.
      
      Should the directors not achieve the matters set out above, there is significant uncertainty whether  the
      company  will continue as a going concern and therefore whether it will realise its assets and extinguish
      its liabilities in the normal course of business and at amounts stated in the financial report.
      
      The   financial   statements  do  not  include  any  adjustments  relating  to  the  recoverability   and
      classification of recorded asset amounts, or to the amounts or classification of liabilities  that  might
      be necessary should the company not be able to continue as a going concern.
      
      
(c)   Changes in Accounting Policy

      From  1  July  2008  the  Company  has adopted the following applicable  Standards  and  Interpretations,
      mandatory for annual periods beginning on or after 1 July 2008.

      *    AASB 2008-10 Amendment to Australian Accounting Standards - Reclassification of Financial Assets
           (amendments to AASB 139 Financial Instruments: Recognition and Measurement and AASB 7 Financial Instruments
           Disclosures).

      Adoption  of  this  Standard  did not have any effect on the financial position  or  performance  of  the
      Company.
      
      The Company has not elected to early adopt any new standards or amendments.


                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008


3.      SEGMENT INFORMATION

        The  principal activity of the Company during the course of the half-year period ended 31 December 2008
        was the exploration of minerals.
        
        The  Company's primary segment reporting format is reported geographically in relation to the  location
        of the Company's exploration permits.
        
        Geographical segments

        The following tables present revenue and profit information regarding geographic segments for the half-
        year periods ended 31 December 2008 and 31 December 2007.


                                        Australia        Republic of      Islamic Republic           Total
                                                            Guinea               of                   
                                                                             Mauritania               
                                            $                 $                  $                     $
 Half year ended 31 December 2008                                                                     
                                                                                                      
 Revenue                                                                                              
 Segment revenue                                   -                  -                   -                  -
 Unallocated revenue                                                                                   199,079
                                                                                                       199,079
                                                                                                              
 Result                                                                                                       
 Segment results                         (1,183,595)                  -                   -         (1,183,595)
 Unallocated income and expenses                                                                       199,079
 Net profit/(loss) for the period                                                                     (984,516)


                                        Australia        Republic of      Islamic Republic            Total
                                                            Guinea               of                   
                                                                             Mauritania               
                                            $                 $                  $                      $
 Half year ended 31 December 2007                                                                     
                                                                                                      
 Revenue                                                                                              
 Segment revenue                                   -                  -                   -                  -
 Unallocated revenue                                                                                   193,856
                                                                                                       193,856
                                                                                                              
 Result                                                                                                       
 Segment results                           (822,784)                  -                   -           (822,784)
 Unallocated income and expenses                                                                       193,856
 Net profit/(loss) for the period                                                                     (628,928)


                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

4       REVENUE
        
                                                                               2008                 2007
                                                                                $                    $
                                                                                                            
Interest income                                                                 184,049              184,466
Office sub-lease rent                                                            15,030                9,390
Total other revenue                                                             199,079              193,856
                                                                                                             
                                                                                                             

5       ADMINISTRATION EXPENSES

                                                                               2008                 2007
                                                                                $                    $
                                                                                                            
Accounting and audit fees                                                        18,035               15,390
Consulting fees                                                                 109,097                    -
Depreciation of plant and equipment                                              21,045                7,717
Employee benefits expense (i)                                                   490,784              293,154
Foreign exchange differences                                                     36,157                    -
Legal fees                                                                        3,445                4,402
Media and public relations                                                       77,977               28,348
Nominated adviser and broker fees                                                59,716               53,586
Promotions, roadshows and conferences                                            89,242               77,072
Reporting and listing costs                                                      71,323              122,001
Telecommunication and computing                                                  57,284               32,351
Travel and accommodation                                                         77,644               79,883
Minimum lease payments - operating lease                                         51,030               37,158
Other                                                                            59,291               81,697
Total administrative expenses                                                 1,222,070              832,759
                                                                                               

(i)     Employee benefits expense is comprised of:

Salaries and wages                                                              322,804              258,219
Share based payments                                                            167,980               34,935
Total                                                                           490,784              293,154
        

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
                                                       

6.      CASH AND CASH EQUIVALENTS


                                                                  31 December 2008           30 June 2008
                                                                             $                    $
                                                                                                           
Cash at bank and in hand                                                    4,213,285             3,653,480

Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts of cash
and cash equivalents represents fair value.


7.      NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

        In line with the Company's focus on progressing its uranium exploration projects, the Company is
        considering opportunities to realise value for its non-uranium assets and has therefore recognised these
        exploration assets as assets held for sale.

        The assets and liabilities associated with the non-uranium assets are as follows:

         Capitalised exploration and evaluation expenditure                    1,656,163     
         Joint venture payables                                                (527,000)     
                                                                               1,129,163     

8.      DIVIDENDS

        There were no dividends proposed or paid during the half-year ended 31 December 2008 (2007: nil).


9.      EXPLORATION AND EVALUATION EXPENDITURE

        Movements in carrying amounts

                                                                        31 December 2008       31 December 2007
                                                                                   $                  $
                                                                                                               
         Carrying amount at 1 July                                             4,361,305              2,106,294
         Additions (i)                                                         3,697,637                962,072
         Carrying amount at end of period net of impairment                    8,058,942              3,068,366

        (i)   Additions  during the half-year ended 31 December 2008 included a non-cash transaction valued  at
               $2,223,290  relating  to the issue of 44,465,803 shares to Areva under a Cooperation  Agreement.
               These transactions were valued using the share price at the date of issue of shares.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008


9.      EXPLORATION AND EVALUATION EXPENDITURE (Continued)
        
        Exploration  and  evaluation  costs have been capitalised at cost. No impairment  loss  was  recognised
        during the half-year ended 31 December 2008 (2007: nil ) because either:
           *       The exploration and evaluation activities are expected to be recouped through successful development
                   and exploitation of the area of interest or, alternatively, by its sale; or
           *       Exploration and evaluation activities in each area of interest have not at the reporting  
                   date reached a stage that permits a reasonable assessment of the existence or otherwise of 
                   conomically recoverable reserves, and active and significant operations in, or relevant to, the 
                   area of interest are continuing.


10.     COMMITMENTS AND CONTINGENCIES

        There  have been no material changes to the commitments and contingencies disclosed in the most  recent
        annual financial report.


11.   CONTRIBUTED EQUITY

                                                                    31 December 2008           30 June 2008
                                                                              $                     $
         Ordinary shares                                                                                     
         444,658,031 (30 June 2008: 380,182,617)                                                             
         ordinary shares, fully paid                                         55,755,998            50,849,319
                                                                                                             
         2,250,000 (30 June 2008: 2,250,000) 25 cent                                                         
         value ordinary shares, partly paid to 1 cent                            22,500                22,500
                                                                             55,778,498            50,871,819

         (i)          Ordinary shares                                                                        
         
               Movement in ordinary shares on issue                         Number                  $
                                                                                                             
                 At 1 July 2007                                             353,330,251            48,081,678
                 Share issues                                                26,852,366             2,953,760
                 Transaction costs                                                    -             (186,119)
                                                                                                             
                  Balance at 31 December 2007                               380,182,617            50,849,319
                                                                                                     
                                                                                                             
                 At 1 July 2008                                             380,182,617            50,849,319
                 Share issues for cash                                       20,009,611             2,698,732
                 Share issues for other assets                               44,465,803             2,223,290
                 Transaction costs                                                    -              (15,343)
                                                                                                             
                  Balance at 31 December 2008                               444,658,031            55,755,998


                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
                                                       

11.   CONTRIBUTED EQUITY (Continued)

        
        (ii)    Options
        
                 Options over ordinary shares:
                 
                 During the financial period:
                     *   3,000,000 (2007: 5,000,000) options were issued to a Director, as share based payments, 
                         over ordinaryshares exercisable at $0.10. The options will vest on 17 December 2009 subject 
                         to completion of service period and are exercisable on or before 17 December 2013. The 
                         options have been valued using the Black & Scholes Option Price Model with the following 
                         inputs;
                         
                              o       Underlying share price                   $0.045
                              o       Exercise price                           $0.11
                              o       Risk-free Rate                           3.88%
                              o       Time to maturity                         5 Years
                              o       Volativity                               73.65%
                              o       Dividends                                Nil during review period

12.     EVENTS AFTER THE BALANCE SHEET DATE
   
        There have been no significant events that have occurred after Balance Sheet date.
        
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                            DIRECTORS' DECLARATION
                                                       

In accordance with a resolution of the Directors of Forte Energy NL, I state that:

In the opinion of the Directors:

(a)     the financial statements and notes of the Company are in accordance with the Corporations Act 2001,
        including:

        (i)     giving a true and fair view of the financial position as at 31 December 2008 and the
                performance for the half-year ended on that date of the Company; and
        
        (ii)    complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
                Regulations 2001; and

(b)     subject to the matters set out in note 2 (b) of the financial statements, there are reasonable grounds
        to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board






Mark D Reilly
Managing Director



Dated at Perth this 16th day of March 2009



ERNST & YOUNG                            The Ernst & Young Building               Tel       61 8 9429 2222
                                                        11Mounts Bay Road         Fax       61 8 9429 2436
                                                        Perth WA 6000
                                                        Australia

                                                        GPO Box M939
                                                        Perth  WA  6843
                                                        www.ey.com/au






Auditor's Independence Declaration to the Directors of Forte Energy NL



In  relation to our review of the condensed half-year financial report of Forte Energy NL for the  half-year
ended  31  December 2008, to the best of my knowledge and belief, there have been no contraventions  of  the
auditor  independence  requirements  of the Corporations Act 2001 or any  applicable  code  of  professional
conduct.





Ernst & Young





T S Hammond
Partner
Perth
16 March 2009
















                                                                                                               
                                                                      Liability limited by a scheme approved
                                                                      under Professional Standards Legislation.
TH;HG;FORTE;009


ERNST & YOUNG                            The Ernst & Young Building               Tel       61 8 9429 2222
                                                        11Mounts Bay Road         Fax       61 8 9429 2436
                                                        Perth WA 6000
                                                        Australia

                                                        GPO Box M939
                                                        Perth  WA  6843
                                                        www.ey.com/au


To the members of Forte Energy NL

Report on the Condensed Half-Year Financial Report

We  have reviewed the accompanying condensed half-year financial report of Forte Energy NL, which comprises the
balance  sheet as at 31 December 2008, and the income statement, statement of changes in equity and  cash  flow
statement  for  the  half-year  ended  on  that  date, other selected  explanatory  notes  and  the  directors'
declaration.

Directors' Responsibility for the Condensed Half-year Financial Report

The  directors  of  the  company  are responsible for the preparation and fair presentation  of  the  half-year
financial  report  in  accordance  with Australian Accounting Standards (including  the  Australian  Accounting
Interpretations)  and  the  Corporations Act 2001. This responsibility includes  establishing  and  maintaining
internal controls relevant to the preparation and fair presentation of the half-year financial report  that  is
free  from  material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our  responsibility is to express a conclusion on the condensed half-year financial report based on our review.
We  conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim
and  Other Financial Reports Performed by the Independent Auditor of the Entity, in order to state whether,  on
the  basis  of  the  procedures described, we have become aware of any matter that makes us  believe  that  the
condensed  half-year financial report is not in accordance with the Corporations Act 2001 including:  giving  a
true  and fair view of the entity's financial position as at 31 December 2008 and its performance for the half-
year  ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting  and  the
Corporations  Regulations 2001. As the auditor of Forte Energy NL, ASRE 2410 requires that we comply  with  the
ethical requirements relevant to the audit of the annual financial report.

A  review  of  a  condensed  half-year  financial report consists of making  enquiries,  primarily  of  persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review
is  substantially  less in scope than an audit conducted in accordance with Australian Auditing  Standards  and
consequently does not enable us to obtain assurance that we would become aware of all significant matters  that
might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.  We
have  given  to the directors of the company a written Auditor's Independence Declaration, a copy of  which  is
included in the Directors' Report.



                                                                                                               
                                                                      Liability limited by a scheme approved
                                                                      under Professional Standards Legislation.
TH;HG;FORTE;008

ERNST & YOUNG


Conclusion

Based  on our review, which is not an audit, we have not become aware of any matter that makes us believe  that
the  condensed  half-year financial report of Forte Energy NL is not in accordance with  the  Corporations  Act
2001, including:
(i)     giving  a  true  and fair view of the Company's financial position as at 31 December 2008  and  of  its
        performance for the half-year ended on that date; and
(ii)    complying with Accounting Standard AASB 134  Interim Financial Reporting and the Corporations
        Regulations 2001.

Inherent Uncertainty Regarding Continuation as a Going Concern

Without qualification to the conclusion expressed above, we draw attention to the following matter. As a result
of  the  matters  described in Note 2(b) Going Concern to the condensed half-year financial  report,  there  is
significant  uncertainty whether the company will be able to continue as a going concern and therefore  whether
it  will  be  able  to  pay  its  debts as and when they fall due and realise its  assets  and  extinguish  its
liabilities in the normal course of business at the amounts stated in the financial report. The condensed half-
year  financial  report does not include any adjustments relating to the recoverability and  classification  of
recorded  asset amounts or to the amounts and classification of liabilities that might be necessary should  the
company not continue as a going concern.




Ernst & Young



T S Hammond
Partner
Perth
16 March 2009






                                                                                                               
                                                                      Liability limited by a scheme approved
                                                                      under Professional Standards Legislation.
TH;HG;FORTE;008

Contact Information

  • Forte Energy NL