Shares outstanding: 119 Million
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Feb. 12 /CNW Telbec/ - Forest Gate Resources Inc. reports that
it has discovered crude oil at Ferrybank, Alberta and has begun producing
natural gas from its four Nevis coalbed methane wells.
The four Nevis coalbed methane wells have began producing natural gas at
a rate comparable to "the average offset well initial daily production rates
of between 125 and 400 thousand cubic feet per day"(*). The four wells drilled
at Nevis Alberta, section 21-39-22 W4, are currently flowing natural gas at an
initial rate of approximately 450 thousand cubic feet of gas per day. The
Company expects this rate to potentially double over the coming months as
facilities are optimized.
The Ferrybank discovery well was swab tested and produced over 92 barrels
of crude oil with no water during 13 hours of swabbing. There are no
comparable wells in the area, therefore, further completion operations are
required to determine potential initial production rates.
The Ferrybank 9-23-45-26 W4 well was recently drilled to a measured depth
of 1543 meters, and perforated in the Glauconitic formation at 1521 meters.
Recorders were placed in the wellbore to gather the necessary information
needed to plan stimulation operations to optimize production. It is expected
that the well will be stimulated within the month. Conventional lifting
equipment and facilities will then be installed immediately thereafter.
"Discovering oil at Ferrybank is a happy surprise. We were primarily
looking for natural gas", said Michael Judson, President and CEO of Forest
Gate. "We are now a producer."
Forest Gate holds a 10% interest in the four Nevis wells and a 37.5%
interest in the Ferrybank well.
About the Company
Forest Gate Resources Inc. is an international 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 Ireland and Canada. The Company's shares trade under the symbol
FGT on the TSX Venture Exchange.
All figures such as drilling results and production rates have been
reported by, Shelby Beattie, President and CEO of operator, Emerald Bay
(*)Initial production rates of offset wells are quoted from Accumap, a
geological program used throughout the Alberta industry,
BOEs and BOEPD 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.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
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