SHARES OUTSTANDING: 100 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Oct. 4 /CNW Telbec/ - Forest Gate Resources Inc. reports that,
in accordance with the Joint Operating Agreement ("JOA") dated June 29, 2007,
it has been issued a Notice of Default for inability to pay its September 17,
2007 cash call within a specified period of time from Operator, Providence
"Although at this time we are out-of-phase with funding requirements for
the Celtic Sea project, our ability to raise approximately $2.5 million to
date is a testament to the strength of our retail investor support," says
Michael Judson, President and CEO of Forest Gate. "While this is a
disappointment to management and shareholders alike, we expect to be able to
fully fund our outstanding balance within sixty days and therefore maintain
our 7.5% interest."
Under the terms of the JOA, Forest Gate has sixty days from the notice
date of October 2, 2007 to remedy the default by paying the full amount of the
outstanding balance to the Operator, Providence. In the event that the default
continues for more than sixty days Forest Gate faces possible forfeiture of
their 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.
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, firstname.lastname@example.org, www.forestgate.ca