Shares outstanding: 29.1 Million
Symbol & exchange: FGE-V
MONTREAL, April 6 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has acquired a working interest in a recompletion oil well located in Grand County, Utah.
Forest Gate will earn a 25% working interest in a suspended producing oil well by covering 100% of the recompletion cost. The 1,081-acre lease also includes production equipment such as a pump jack and storage tanks. Forest Gate will receive 50% of the oil and gas revenue until it recoups 100% of the recompletion cost estimated at $380,000.
The well was initially drilled to a depth of approximately 4600 feet and because of Federal lease stipulations, completion was not attempted until October 12, 2007. During the drilling operations mud loss and a poor cement job caused formation damage and minimized the evaluation of the lower Wingate. The well was then temporarily suspended.
Forest Gate is planning to evaluate 3 zones: the Upper Wingate, Kayenta and the Navajo Sandstone. If commercial production is established in any zone, completion efforts of other zones will be deferred.
"This recompletion project offers Forest Gate a low-risk oil well that we can recomplete in short order," said Don Vandergrift, Forest Gate's President and Chief Operating Officer. "This well intersected hydrocarbon-bearing formations and produced some oil from the lower Wingate Formation before it was damaged", added Mr. Vandergrift.
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 29.1 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