SHARES OUTSTANDING: 100 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Oct. 11 /CNW Telbec/ - Forest Gate Resources Inc., together
with its Celtic Sea partners, reports that the appraisal well 50/11-3 on its
Hook Head field shows a significant oil accumulation and a high quality
reservoir. The well has now been suspended for future re-entry and potential
The hydrocarbon type recovered is confirmed as good-quality sweet,
30 degree API oil with associated gas. This oil is light with low viscosity
and therefore should allow for a higher flow rate under natural pressure.
Reservoir porosity is excellent at 27% and permeability exceeded expectations
at 80-100 millidarcies. These indicate excellent productivity within the
reservoir. The reservoir has normal pressure around 1,170 psi at 2,550 feet
"The well data looks great and strongly suggests that Hook Head will
develop into an economically-compelling oil reservoir," said Michael Judson,
President and Chief Executive Officer of Forest Gate. "Hook Head is a major
oil discovery and the largest of its kind off the coast of Ireland to date."
During the preliminary evaluation of Hook Head, hydrocarbons were
encountered over a 484 ft. gross interval in the main target zone with 75 ft.
of net hydrocarbon-bearing section. Three further prospective zones, which
were identified pre-drill as exploration targets for the well, were all logged
as being hydrocarbon-bearing. These high quality reservoir zones, which are
above the main target zone, had good oil and gas shows during drilling and
logged cumulatively an approximate 20 ft. of additional net pay.
While key reservoir and fluid data were acquired during the initial well
flowing period, down-hole mechanical conditions(*), which were primarily related
to the integrity of the casing string cement bond, delayed the implementation
of a full flow-test program. Further work on the down-hole mechanical
conditions was precluded by time limitations relating to the rig contract.
Success in Hook Head field has broad economic upside potential for the
consortium. A successful flow of oil from Hook Head would justify the economic
development of five additional reservoirs jointly owned by the consortium in
the Celtic Sea basin. For example, Dunmore at only 20km away from Hook Head
and Helvick only 40km away, both have flowing oil discoveries.
The Hook Head partners have committed to an immediate and detailed
evaluation of the well results in the context of operations as well as
reservoir data with a view to further appraisal/ development drilling at
Hook Head early in the 2008 drilling season. Discussions have already
commenced regarding the securing of an appropriate rig.
In order to maintain its 7.5% interest in the Celtic Sea project,
Forest Gate is continuing its efforts to fill the second tranche of its
non-brokered private placement announced in a news release dated September 14,
2007. Forest Gate closed the first tranche of the private placement with gross
proceeds of $609,960.
(*) A lack of good casing cement bond resulted in poor casing integrity,
which resulted in water ingress from zones above and below the main
hydrocarbon-bearing intervals. Several sequential remedial cement
jobs were carried out which hampered the ability to carry out a full
testing program within the timeframe available. However, this
remedial work has secured the well for potential future re-use.
About Hook Head
The Hook Head structure is a large mid-basinal anticline where two
previous wells have encountered hydrocarbon bearing sands. The original
IRL50/11-1 discovery well was drilled by Marathon Oil & Gas, Europe, in 1971.
A subsequent IRL50/11-2 appraisal well was drilled by Marathon in 1975 as a
delineation well at the down-dip edge of the structure. Post-drill mapping by
Marathon indicated that the crest of the structure was located to the
north-east of the IRL50/11-1 discovery well, which was further supported by
the seismic data acquired by Providence Resources PLC in 2006 and is now
substantiated by the this IRL50/11-3 appraisal well. This crestal location is
some 2 km northeast of the IRL50/11-1 well and is approximately 70 metres
structurally higher than the original well.
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.
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.
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