Lfeaccetfusd Regulatory News (FEP)

6 Jun 2008 12:05



6 June 2008 

Forum Energy Plc ("Forum" or the "Company")

Filing by Basic Energy Corporation

Forum notes the filing in the Philippines by Basic Energy Corporation ("Basic") of a of a disclosure with the Philippine Stock Exchange of a declaration of Forum's alleged default in relation to the Sale and Purchase Agreement, dated 3 April 2006, between Forum and Basic and its subsequent deemed termination. The Board of Forum would like to make the following points:

1. For clarification this filing does not relate to or involve in any way Forum's prime asset, GSEC101. 

2. The declaration of default is inaccurate in fact and not enforceable in law. In addition, the Sale and Purchase Agreement expressly requires arbitration as a first step in any dispute. Hence, the unilateral declaration of default and termination are improper and unlawful.

3. The actual discussions which have been ongoing between Forum and Basic relate to a non material sum of approximately $600,000.

Forum is currently consulting with its legal advisors and will take all necessary steps to protect its position and will issue further updates as necessary. 

For further information please contact: 

Russell Harvey, CEO, Forum Tel: +44 (0)1932 445 344

Nick Naylor, Noble & Company Ltd Tel: +44 (0)20 7763 2200 

(Nominated Adviser & Broker)

Or visit the Company's website:

www.forumenergyplc.com