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25 Jun 2008 07:00
25 June 2008
Forum Energy Plc ("Forum" or the "Company")
Update to GSEC101 Joint Venture
Forum is pleased to announce that its wholly owned subsidiary, Forum (GSEC101) Limited, has entered into an amendment to the Heads of Agreement signed with Monte Oro Resources & Energy, Inc. ("Monte Oro") in August 2007 (the "Joint Venture").
Under the terms of the amendment, Monte Oro will immediately acquire a 30% participating interest in GSEC101 upon payment to Forum of US$1,700,000 in respect of past costs and expenses incurred by Forum. Following this transaction, which is subject to Philippine government approval, Forum will hold a 70% interest in GSEC101.
The participation of Monte Oro in Forum's application to convert GSEC101 to a full service contract, now pending with the Department of Energy, will entitle the Joint Venture to the Filipino Participation Incentive Allowance ("FPIA") which equates to 7.5% of gross proceeds from any future production.
Monte Oro will continue to assist in obtaining all regulatory approvals for the conversion of GSEC101 into a service contract.
The tri-partite agreement between China, Vietnam and the Philippines, which the Company believes may have delayed the conversion of GSEC101 to a service contract, expires this month.
Alan Henderson, acting Chief Executive Officer, commented:
"We are very pleased to have solidified our relationship with Monte Oro which, amongst other things, guarantees our qualification for the FPIA thus enhancing the attractiveness of any future development on GSEC101. Furthermore, the immediate injection of US$1,700,000 demonstrates Monte Oro's confidence in the project, as well as further strengthening our balance sheet going-forward."
For further information please contact:
Alan Henderson Tel: +44 (0)1932 445 344
Non-Executive Chairman and acting Chief Executive Officer, Forum Energy Plc
Andrew Mullins Tel: +44 (0)1932 445 344
Company Secretary, Forum Energy Plc
Nick Naylor / Jamie Boyd Tel: +44 (0)20 7763 2200
Noble & Company Ltd, Nominated Adviser & Broker
James Henderson Tel: +44 (0)20 7743 6673
Pelham Public Relations Mob: +44 (0)7774 444 163
Or visit the Company's website:
www.forumenergyplc.com
About Monte Oro Resources & Energy, Inc.
Monte Oro Resources & Energy, Inc. ("Monte Oro") is a privately held Philippine company formed in 2005 specifically to invest in Mining, Oil & Gas and Infrastructure investments in the Philippines. The company is chaired by Dr. Walter W. Brown who is also Chairman of Philex Mining Corporation, which is listed on the Philippine Stock Exchange under "PX".
The board of Monte Oro also consists of a number of eminent Filipino businessmen including Wilson Sy, the former Chairman of the Philippine Stock Exchange.
The company currently holds interests in both coal and oil & gas licences in the Philippines and is currently involved in the privatization of the Philippine national grid (Transco) in a deal estimated to be valued in excess of US$3.95Bn.
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