Lfeaccetfusd Regulatory News (FEP)

23 Jul 2007 12:42

Forum Energy Plc23 July 2007 23 July 2007 Forum Energy Plc ("Forum" or the "Company") Results of AGM and GSEC101 update Forum (AIM symbol: FEP), the Philippine focussed independent oil, gas and coalexploration and production company, announces that at the annual general meetingof the Company, held today at 11a.m., all the resolutions were passed. The Board notes press speculation in The Manilla Bulletin Online today raisingquestions about Forum's legal position in relation to GSEC101. The Board hashad confirmation from its own legal advisers that, in their opinion, Forum hasfull legal title to GSEC101. This has been confirmed in discussions with thePhilippines Department of Energy ("DOE"). As a consequence, the Board believesthat the speculation is wholly inaccurate. The Company continues to actively progress discussions to convert the GSEC101licence to a Service Contract and to introduce a partner. The timing on thesedevelopments remains subject to approval from the Philippines government. GSEC101 (Reed Bank) In July 2006, the Company completed the interpretation of the 3D seismic surveyshot in 2005 across the Sampaguita gas discovery in licence area GSEC101 to theWest of Palawan Island. Forum currently holds 100% of this under-exploredacreage, which covers 10,630 square kilometres and contains at least eightadditional undrilled prospects and leads. The seismic interpretation, coupled with the data from the wells drilled in the1970s and 1980s, increased the expected reserves to 3.4 TCF gas-in-place(previously independently assessed by PGS Reservoir Ltd. at 2.7 TCFgas-in-place). Additionally the evaluation indicated an upside of up to 20 TCF.Additional leads were also identified, further adding to the prospectivity ofthe area. As a consequence of the positive results Forum commenced the process ofconverting the licence to a Service Contract in a form as pre-agreed andappended to the current Geophysical Survey & Exploration ("GSEC") licence,allowing the Company to move to the next stage of evaluation through thedrilling of an appraisal well. While the Company is hopeful of award of the Service Contract shortly, with thepolitical sensitivities of the area, the Company needs to be in a position tomanage the eventual timeframe. The potential size and scale of the project open up a number of developmentoptions, including both gas export and LNG. This will ultimately be dependantupon the reserves finally defined as a result of future drilling but it isanticipated that both new wells and further seismic will be necessary. Sampaguita lies 250 kilometres south west of the world-class Malampaya GasField, where operator Shell has installed extensive production facilities andpipeline infrastructure that supplies gas to three Philippine power plants. For further information please contact: Forum Energy Plc:Russell Harvey Tel: +44 (0)1932 445344 Noble & Company Ltd:Nick Naylor Tel: +44 (0)207 763 2200 Pelham Public Relations:James Henderson Tel: +44 (0)20 7743 6673 Mob: +44 (0)7774 444163 Charles Vivian Tel: +44 (0)20 7743 6672 Mob: +44 (0)7977 297903 This information is provided by RNS The company news service from the London Stock Exchange