SHARES OUTSTANDING: 142 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Jan. 12 /CNW Telbec/ - Forest Gate Resources reports that it
has acquired a license targeting Bakken Formation hydrocarbons in South
The terms of the lease allow Forest Gate to undertake oil and gas
exploration, development and production on two-quarter sections, or 320 acres,
near the town of Estevan, Saskatchewan.
According to industry reports, Bakken Formation oil exploration in the
area has resulted in production of nearly five million barrels annually
according to 2007 figures. Bakken wells tend to be highly productive,
producing 200 barrels a day or more of sweet, light crude oil with 41-degree
Petrobank, TriStar and Crescent Point Energy Trust are among the
companies currently producing oil in this area of South Eastern Saskatchewan.
Another prominent player is Talisman Energy, with over 200 development wells
identified, 22 of which were planned for drilling in 2008, in proximity to
Forest Gate's newly acquired acreage near the town of Estevan.
Of particular interest is Crescent Point Energy Trust, with a dominant
position at the Viewfield Bakken, and currently producing in excess of 14,000
boepd, with post fracture stimulation production rates of 200 boepd per well.
The Trust's wells in the Viewfield Bakken are also in the vicinity of Forest
Gate's newly acquired property (please see company website www.forestgate.ca
for map details).
"The industry estimate of Bakken oil in this area of Saskatchewan is in
the 100 billion barrel range," said Michael Judson, President and CEO of
Forest Gate. "This is a great place in which to develop our business."
About the Bakken Formation
The Bakken is a geological formation of siltstone and sandstone about 300
metres below the Mississippian formation, producing sweet, light crude oil
with 41-degree gravity. An estimated 25 per cent of the Williston Basin, which
covers some 200,000 square miles or 518,000 square kilometers, is located in
Saskatchewan. The estimate of Bakken oil in the province could range anywhere
from 25 billion barrels to 100 billion barrels of oil in place.
About the Company
Forest Gate Resources Inc. is an oil & gas exploration and production
company. The Company is seeking to increase shareholder value through
participation and development of oil & gas exploration and production projects
in Canada and internationally.
The Company's shares trade under the symbol FGT on the TSX Venture
(*) Source: Oil & Gas in Saskatchewan, Saskatchewan Industry and
Resources August 22, 2007.
Note: Specific information related to individual companies mentioned was
sourced from respective company websites.
This news release contains certain forward-looking statements, including
statements regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and uncertainties.
Actual results may differ materially from results contemplated by the
forward-looking statements. When relying on forward-looking statements to make
decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to update any
forward looking statements, oral or written, made by itself or on its behalf.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
The TSX Venture Exchange has not reviewed nor does it accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Robert Kramberger, V-P, Investor Relations,
1-866-666-3040, firstname.lastname@example.org, www.forestgate.ca