SHARES OUTSTANDING: 140 MILLION
SYMBOL & EXCHANGE: FGT-V
Program Focused on Appraisal of the Hook Head Oil Field
Further Appraisal Well Planned for Dunmore Oil Discovery
MONTREAL, June 19 /CNW Telbec/ - Forest Gate Resources Inc., together
with its partners, is pleased to announce details of the upcoming 2008
drilling program offshore Ireland. The semi-submersible drilling rig
GlobalSantaFe Arctic 2 has been confirmed for a two firm plus one option well
program in the North Celtic Sea Basin, offshore southern Ireland. Drilling
activities are expected to commence in August 2008.
The 2008 drilling program has been agreed following the evaluation of
data collected during last year's successful 50/11-3 oil discovery on the Hook
Head structure. Post drill analysis by operator, Providence Resources,
suggests prospective resources of up to 60 million barrels of oil recoverable
based on stock tank oil initially in place of approximately 390 million
barrels of oil. A number of further appraisal well locations have since been
identified across the Hook Head structure with the north-west sector being the
first to be evaluated as part of the 2008 program. This well location is
interpreted to be structurally higher than the 50/11-1 well which encountered
approximately 100ft of net hydrocarbon bearing sands of Lower Cretaceous age
and is therefore considered to be a relatively low risk location. The results
from the initial well will be used in deciding the location of all subsequent
wells in the 2008 program. This drilling program has been designed not only to
further demonstrate the extent and magnitude of the Hook Head oil field but
also to provide important information on deliverability, which is a key
element in any future commercial development.
Furthermore, ongoing studies in the Celtic Sea have highlighted
significant oil potential in an adjacent discovery known as Dunmore, which is
located in blocks 50/6 & 7 and is some 20 kilometres from Hook Head. The
50/6-1 Dunmore discovery well flowed at approximately 2,100 BOPD of 44o API
oil from Jurassic sands and updated mapping has revealed an optimal appraisal
well location on the structure approximately 500ft up-dip from the original
well. A site survey has been acquired for this location and well planning is
being finalised. Providence's re-analysis of existing seismic data, together
with a re-evaluation of the drill stem test data from the discovery well,
suggest that the main structure contains contingent resources of approximately
18 million barrels of oil.
"With Dunmore's potential as a stand alone producer, we have yet another
chance at establishing oil production in the Celtic Sea", said Michael Judson,
President and CEO of Forest Gate Resources. "Our opportunity for success is
About the Company
Forest Gate Resources Inc. is an international oil & gas exploration
company. The company is seeking to increase shareholder value through
participation and development of oil & gas exploration and production projects
in Ireland and Canada. The Company's shares trade under the symbol FGT on the
TSX Venture Exchange.
All technical figures, such as resource estimates and flow rates,
included in this release have been provided to Forest Gate and reviewed
by operating company, Providence Resources.
Contingent Resources - Those quantities or petroleum estimated as of a
given date to be potentially recoverable from known accumulations by
application of development projects but which are not currently considered to
be commercially recoverable due to one or more contingencies. Contingent
resources are a class of discovered recoverable resources.
Prospective Resources - Those quantities of oil and gas estimated, as of
a given date, to be potentially recoverable from undiscovered or untested
accumulations by application of future development projects.
About Forward-Looking Information and Statements
This news release contains forward-looking statements, within the meaning
of applicable securities laws, that address goals, expectations or projections
about the future. The use of any of the words "expect," "anticipate,"
"continue," "estimate," "objective," "ongoing," "may," "will," "project,"
"should," "believe," "plans," "intends," "might," and similar expressions are
intended to identify forward-looking information or statements. In particular,
but without limiting the foregoing, this news release contains forward-looking
statements with regard to cash flow, capital spending, debt and debt
repayment, strategic alternatives, drilling opportunities and business plans.
The forward-looking information and statements included in this news release
are not guarantees of future performance and should not be unduly relied upon.
The forward-looking statements contained in this news release are based
on Forest Gate's current goals, expectations, estimates, assumptions and
projections and involve a number of risks and uncertainties that could cause
actual results to differ materially from those anticipated and described in
the forward-looking statements. Such risks and uncertainties include, without
limitation: volatility in market prices for oil and natural gas; volatility or
fluctuation in oil and natural gas production levels; volatility in currency
exchange rates; liabilities and risks inherent in oil and natural gas
operations, including geological, technical, drilling and processing problems;
uncertainties associated with estimating reserves; competition for, among
other things, capital, acquisitions, reserves, undeveloped land and skilled
personnel; incorrect assessments of the value of acquisitions; Forest Gate's
success at the acquisition, exploration and development of reserves; changes
in market, economic and business conditions; and actions by governmental or
regulatory authorities including changes in tax laws or incentive programs.
The foregoing list of assumptions, risks and uncertainties is not exhaustive.
Additional information on these and other factors which could affect
operations or financial results are included under the heading "Risk Factors"
in Forest Gate's Annual Information Form as filed under Forest Gate's profile
on www.sedar.com. Additional information may also be found in Forest Gate's
other reports on file with Canadian securities regulatory authorities.
The forward-looking statements included in this news release speak only
as of the date of this news release, and Forest Gate assumes no obligation to
publicly update or revise them to reflect news events or circumstances, except
as may be required pursuant to applicable laws.
For further information:
For further information: Robert Kramberger, V-P, Investor Relations,
1-866-666-3040, firstname.lastname@example.org, www.forestgate.ca