Lfeaccetfusd Regulatory News (FEP)

20 Aug 2007 08:00

Forum Energy Plc20 August 2007 20 August 2007 Forum Energy Plc ("Forum" or "the Company") GSEC101 JOINT VENTURE Forum is pleased to announce that its wholly owned subsidiary, Forum (GSEC101)Limited, has entered into Heads of Agreement with Monte Oro Resources & Energy,Inc. ("Monte Oro"), a private Philippine company focused in Mining, Oil & Gasand Infrastructure investments in the Philippines. Under the terms of the agreement, Monte Oro will acquire a 30% participatinginterest in GSEC101. Monte Oro will pay Forum Energy plc the amount ofUS$1,500,000 of past costs to the date of the agreement plus its pro-rata shareof costs incurred to the point of payment. Payment will take place the earlierof six months following award of the Service Contract or completion of anyfuture farm out transaction. The participation of Monte Oro in the Service Contract application of Forum, nowpending with the Department of Energy ("DOE"), will entitle the joint venture tothe Filipino Participation Incentive Allowance ("FPIA") which equates to 7.5% ofgross proceeds from any future production. Monte Oro will assist in obtainingall regulatory approvals for the conversion of GSEC 101 into a Service Contract. The assignment of the interest is subject to the approval of the Department ofEnergy of the Republic of the Philippines. Statement from Russell Harvey, Chief Executive: "We are very pleased to have signed this Agreement with Monte Oro which we areconfident will assist us in a timely conversion of the Service Contract. Thispartner brings a wealth of local experience which will assist in developingForum's business while providing welcome Philippine participation in a majorlocal resource. The new Joint Venture will also qualify for the FilipinoParticipation Incentive Allowance which enhances the attractiveness of anyfuture development. I am looking forward to working closely with our new partnerto expedite both the Service Contract award and activity on the blockgoing-forward." Forum Energy Plc:Russell Harvey Tel: +44 (0)1932 445344Noble & Company LtdNick Naylor Tel: +44 (0)20 7763 2200Jamie Boyd Tel: +44 (0)20 7763 2200Pelham Public Relations:Charles Vivian Tel: +44 (0)20 7743 6672 Mob: +44 (0)7977 297 903Evgeniy Chuikov Tel: +44 (0)20 7743 6672 Mob: +44 (0)7894 608 606 Notes to Editors About Monte Oro Resources & Energy, Inc. Monte Oro Resources & Energy, Inc. ("Monte Oro") is a privately held Philippinecompany formed in 2005 specifically to invest in Mining, Oil & Gas andInfrastructure investments in the Philippines. The Company is chaired by Dr.Walter W. Brown who is also Chairman of Philex Mining Corporation, which islisted on the Philippine Stock Exchange under "PX". The board of Monte Oro also consists of a number of eminent Filipino businessmenincluding Wilson Sy, the former Chairman of the Philippine Stock Exchange. The company currently holds interests in both Coal and Oil & Gas licenses in thePhilippines. This information is provided by RNS The company news service from the London Stock Exchange