SYMBOL & EXCHANGE: FGE-V
CALGARY, May 29, 2012 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that it has entered into a definitive purchase and sale agreement with its joint interest partner in the Rangeview, Divide and Katherine properties located in southwest Saskatchewan to sell their entire working interest to an arms-length partner for gross proceeds of $1.5 million.
At closing, as a ten percent interest holder in the licenses, Forest Gate's share of the proceeds will amount to $150,000. In a follow-on agreement, Forest Gate will pay $37,500 of its share of the proceeds to its joint interest partner that holds ninety percent. This is in respect of unpaid operator's expenses that the joint interest partner had incurred as operator of the properties. The balance of the proceeds will used to pay off Forest Gate's loan to the Canadian Western Bank, Edmonton.
Pursuant to the purchase and sale agreement, the purchaser has paid a non-refundable deposit totaling $100,000 to joint venture partners. Closing of the sale of the properties is expected to occur on May 31, 2012 and subject to a number of conditions including but not limited to, approval of the TSX Venture Exchange.
Forest Gate also reports that it has switched audit firms for the filing of its 2011 financial statements. Chartered accountants, Morgan & Co. has replaced MNP as auditors. The last several weeks have seen the transitioning of the file from MNP to Morgan & Co. and Forest Gate expects to have its statements filed within the next ten working days.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production, and non-energy resource company trading on the TSX Venture Exchange under the symbol FGE. The Corporation is seeking to increase shareholder value through participation and development of energy and other resources 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.
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