Nov 17

Forum Energy Plc (“Forum”) is a gas and oil exploration and production company based in the UK. Its main area of operation is the Philippines. Forum was created in 2005 from the consolidation of the Philippine oil, gas and coal assets of Canadian company FEC Resources, Inc. and UK-based Sterling Energy Plc into one corporation.

Forum Energy Plc was admitted to trading on the Alternative Investment Market of the London Stock Exchange in 2005.

Assets

Forum holds a balanced portfolio of interests in oil and gas fields in the Philippines. These include:

  • A 2.27% interest in NW Palawan, which contains the Galoc field, currently producing over 8000 barrels of oil per day. This production provides income for the company and helps fund exploration of its higher risk, higher potential interests.
  • A 66.7% interest in Block SC40 (Cebu), a service contract containing the onshore Libertad gas field and Maya oil discoveries. Exploration of the area using gravity survey is underway.
  • A 70% interest in Block SC72 (formerly GSEC 101), located off the northwest coast of Palawan Island in the Philippines. This contains the Sampaguita gas field discovery, which has potential to be one of the most significant natural gas finds in recent years. In 2006 interpretation of 3D seismic data indicated a range of gas-in-place up to nearly 20 trillion cubic feet (TCF). Further testing and the drilling of 3 exploratory wells has confirmed a mean volume of 3.4 TCF gas in place.

Recent Developments

In February, 2010, Forum Energy Plc was awarded the Service Contract for GSEC 101 and is continuing exploration and analysis of the area in preparation for further development.

In addition to the confirmed reserves, which contain up to 10 TCF gas in place, there are unexplored areas of the block which can potentially double the amount of gas in place. Under the terms of the service contract, Forum has committed to spend a minimum of $3 million in further exploration (continuing seismic data gathering plus appraisal wells) over the next 18 months, and is projected to invest significantly more, subject to funding being raised.

Shares of Forum Energy Plc (FEP) are listed on the London Stock Exchange’s Alternative Investment Market and were at 50.30 p as of 16 November 2010.

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