SHARES OUTSTANDING: 142 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Sept. 4 /CNW Telbec/ - Forest Gate Resources Inc. (the
"Company") announced today that the company has forfeited its 8.3888% working
interest in the Celtic Sea project and therefore, the Company will not proceed
with the private placement announced August 26, 2008.
Under the terms of the Joint Operating Agreement ("JOA") in respect of
Irish Continental Shelf Standard Exploration License 3/07 (Blackrock Prospect)
and Standard Exploration License 2/07 (Celtic Sea Prospects) dated June 29,
2007, the Company's failure to pay by September 1, 2008 the full amount of its
June 3, 2008 cash call to the operator, Providence Resources p.l.c., has
resulted in forfeiture of the Company's interest in the joint venture.
"Although every effort was made to continue financing this project, the
condition of the capital markets made it impossible to fund our share of the
Celtic Sea program", said Michael Judson, President and Chief Executive
Officer of Forest Gate Resources Inc. "Our attention, for the time being, will
now be focused on expanding our Canadian oil and gas production, a plan fully
supported by many of our investors."
Forest Gate has a working interest in three Alberta properties: Ferrybank
which has one oil producing well, Nevis which has four natural gas producing
wells and Kelsey, which recently flowed approximately 265 thousand cubic feet
of gas per day during the 48-hour flow test, with a tie-in location identified
and plans for pipeline construction to begin immediately after surface rights
and pipeline permit are acquired.
About the Company
Forest Gate Resources Inc. is an oil & gas exploration and production
company. The Company is seeking to increase shareholder value through
participation and development of oil & gas exploration and production projects
in Canada and internationally. 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