Shares outstanding: 30.5 Million
Symbol & exchange: FGE-V
MONTREAL, May 11 /CNW Telbec/ - Forest Gate Energy Inc. reports that it will focus on its Rush Lake oil prospect in Cedar Valley, Iron County, Utah, during the immediate term.
As previously announced in the initial December 9, 2009 and subsequent January 19, 2010 Forest Gate news releases, the Rush Lake prospect is a shallow-drilling target, and is a re-drill target to a 1948 Dakota Sandstone discovery made at a depth of 2800 feet and never put into production.
This Rush Lake prospect is based on by-passed pay from well logs. A re-assessment of published regional geological and seismic data has led to the identification of a potentially larger Dakota play.
The initial 5000-foot well will test the Dakota Formation and a deeper Navajo target at a cost of $800,000, or $1.2 million if completed (see previous news releases: December 9, 2009 and January 19, 2010). Permitting applications for drilling at the Rush Lake prospect have been filed.
As a result of this change in strategy, Forest Gate will not be pursuing the well recompletion project (announced on April 6, 2010) in Grand County, Utah, and will instead apply all of its resources to the development of Iron County, Utah, where Forest Gate owns 121,000 gross acres (30,500 net) in this prospect area.
"We realized that we could create more value for the company by drilling in an area where we have a substantially larger land position," said Michael Judson, Forest Gate's Chief Executive Officer.
In other news, Forest Gate wishes to announce the departure of Mr. Donald Vandergrift, who was formerly the company's President and Chief Operating Officer. Mr. Vandergrift has also resigned as a director of the company.
Mr. Vandergrift, through his private company Vanterra Energy Inc., will remain operator on Forest Gate's Rush Lake prospect.
"Don has been helpful in enabling Forest Gate to acquire the company's significant acreage positions in Utah and Arizona, and for helping source the huge library of geological and geophysical data," said Michael Judson. "As Operator on these two acreages, Don will continue to help Forest Gate unlock their value."
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 30.5 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, email@example.com; www.forestgate.ca