Shares outstanding: 142 Million
Symbol & exchange: FGT-V
MONTREAL, April 21 /CNW Telbec/ - Forest Gate reports that its joint
venture natural gas well at its Kelsey property in Central Alberta has been
successfully tied-in and is currently producing.
Recent pipeline construction and facilities installations were completed
at Kelsey 1-23-43-18 W4. The well is currently flowing approximately 194,000
cubic feet per day on a constrained basis. Once facilities are optimized, the
gas volume is expected to increase. Based on testing, the well is estimated to
be able to produce in the 250,000 to 300,000 cubic feet per day range.
The Kelsey well in which Forest Gate owns a 38% interest, represents
Forest Gate's third joint venture agreement with Calgary-based Emerald Bay
"Our strategy of increasing oil and gas production in Alberta continues
to reap rewards," said Michael Judson, Chairman, President and CEO of Forest
Gate. "Kelsey represents yet another success and proudly joins the ranks along
side Ferrybank and Nevis of Forest Gate's expanding base of revenue-generating
In other production news, Forest Gate's working interest in the Ferrybank
well has been adjusted to 41.3% from 47.5%. This is a result of Ferrybank
being re-classified as an oil well by the province of Alberta's Energy
Resources Conservation Board (ERCB).
Joint venture partner Canadian Natural Resources (CNRL) owns the mineral
rights (Petroleum and Natural Gas) in the North East quarter of section 23
where Ferrybank was drilled. The well was initially licensed and drilled as a
'gas well' by Forest Gate and its partners.
CNRL has increased its working interest by an additional 12.5%, bringing
their ownership to 16.667% of the 16-23 Ferrybank well. A new pooling
agreement for 'petroleum' has been completed with CNRL. The original "natural
gas' pooling agreement remains unchanged. CNRL must also pay for the
additional 12.5% they earned in the 16-23 well and each partner in the well
will be reimbursed proportionately.
All figures such as drilling results and production rates have been
reported by Shelby Beattie, President and CEO of operator, Emerald Bay
About Forest Gate Resources
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.
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, email@example.com; www.forestgate.ca