SHARES OUTSTANDING: 27.3 MILLION
SYMBOL & EXCHANGE: FGE-V
MONTREAL, Feb. 24 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has discovered oil on its Crescent Junction property near Green River, Utah.
Forest Gate holds a 50% working interest in the Tidewater State 3-24-2219 exploration well. Third party evaluation indicates oil potential in the following zones:
- 40 feet of potential oil pay (390 - 430 feet): 28% porosity and a
calculated 37% water saturation in the "Brushy Basin" member of the
- 50 feet of potential oil pay (770 - 820 feet): 20% porosity and 39%
water saturation in the "Lower Salt Wash" member of the Morrison
- 10 feet of potential oil pay (830 - 840 feet): 20% porosity and a
calculated 37% water saturation in the "Lower Salt Wash"
- 30 feet of potential oil pay (870 - 900 feet): 20% porosity and a
calculated 50% water saturation in the "Lower Salt Wash"
The well is located in Section 3, T22S-R19E, approximately 29.8 miles East of Green River, Grand County, Utah and was drilled to a depth of 3,050 feet targeting various formations.
Production casing was run to a depth of 1,100 feet for production testing of the four shallow oil zones listed above. Good, clean porosity was noted in these zones. The productivity will be known once the zones are production tested. Production testing will be undertaken during the next few weeks. Both the Brushy Basin and Lower Salt Wash zones have been producing oil for many years in the Cisco Dome field located approximately 20 miles east of the well.
"We are pleased to have found significant potential pay in these shallow zones," said Don Vandergrift, Forest Gate's President and Chief Operating Officer. "While targeting the Wingate zone, I think our drill got a little too close to the nearby salt wall,"
"We now have significant new data to correlate and we expect to target the Wingate reservoir with future wells. Our initial target has provided us with our first potential oil production in this area," added Mr. Vandergrift.
Forest Gate currently owns various interests in 121,000 gross acres and 31,335 net acres in Utah, and also has an option to acquire a 50% interest in an additional 135,505 gross acres and 37,264 net acres in Utah.
All figures from initial drilling results 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 27.3 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.
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