Shares outstanding: 28.2 Million
Symbol & exchange: FGE-V
MONTREAL, March 22 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has completed production testing of the four shallow zones of the first well on its Crescent Junction property in Grand County, Utah.
Forest Gate has abandoned its first Utah well following production testing that recovered oil at non-commercial rates. As previously reported, The Tidewater State 3-24-2219 exploration well, initially drilled on January 25, 2010, intersected four different potential hydrocarbon-bearing zones totalling 130 feet of potential pay from four shallow zones. Production casing was run to a depth of 1,100 feet.
The four zones of potential oil pay were tested over a twelve-day period. While oil was recovered, the water cut (or percentage of water versus oil) was too high to enable commercial production.
Although commercial production was a requirement to maintain the 2,160 acre Cabot lease, data from the well site and Forest Gate's access to 3D seismic has revealed new leasing and drilling opportunities in the area. These opportunities relate to the Wingate and White Rim formations originally targeted by the company and which offer the greatest potential pay. Forest Gate will continue to expand its interest in the area.
"This is only our first well in the area, and our active presence here has availed us significant new opportunities," said Don Vandergrift, Forest Gate's President and Chief Operating Officer. "Although this well was not an economic success, we have identified from the well's synthetics, water analysis, and 3D seismic, direction for possible new commercial opportunities. In this area, which includes new drilling opportunities, there may be a nearby well work-over opportunity. This nearby well is an existing producer with mechanical challenges".
For the immediate future, Forest Gate will turn its attention to a well-twinning opportunity it has in Cedar Valley, Iron County Utah where it owns 121,000 gross acres.
The initial program in Iron County would involve drilling a 5,000-foot Rush Lake prospect targeting by-passed Dakota sand pay plus deeper Navajo sands. This shallow drilling target would be a re-drill to a 1948 Dakota Sandstone discovery at a depth of 2,800 feet, which was never put in production.
All figures stated herein have been reported by Don Vandergrift, President and Chief Operating Officer of Forest Gate Energy Inc.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil & gas exploration and production company trading on the TSX Venture Exchange under the symbol FGE with 28.2 million shares outstanding. The Company is seeking to increase shareholder value through participation and development of oil & gas exploration and production projects in Canada and internationally.
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release. This transaction is subject to TSX Venture Exchange Approval.
SOURCE Forest Gate Energy Inc.
For further information: For further information: Robert Kramberger, V-P, Investor Relations, 1-866-666-3040, firstname.lastname@example.org, www.forestgate.ca