Shares outstanding: 28.2 Million
Symbol & exchange: FGE-V
MONTREAL, March 22 /PRNewswire-FirstCall/ - Forest Gate
Energy Inc. reports that it has completed production testing of the
four shallow zones of the first well on its Crescent Junction
property in Grand County,
Utah.
Forest Gate has abandoned its
first Utah well following
production testing that recovered oil at non-commercial rates. As
previously reported, The Tidewater State 3-24-2219 exploration well, initially drilled on
January 25, 2010, intersected four
different potential hydrocarbon-bearing zones totalling 130 feet of
potential pay from four shallow zones. Production casing was run to
a depth of 1,100 feet.
The four zones of potential oil pay were tested over a
twelve-day period. While oil was recovered, the water cut (or
percentage of water versus oil) was too high to enable commercial
production.
Although commercial production was a requirement to maintain the
2,160 acre Cabot lease, data from the well site and Forest Gate's access to 3D seismic has revealed
new leasing and drilling opportunities in the area. These
opportunities relate to the Wingate and White Rim formations
originally targeted by the company and which offer the greatest
potential pay. Forest Gate will
continue to expand its interest in the area.
"This is only our first well in the area, and our active
presence here has availed us significant new opportunities," said
Don Vandergrift, Forest Gate's President and Chief Operating
Officer. "Although this well was not an economic success, we have
identified from the well's synthetics, water analysis, and 3D
seismic, direction for possible new commercial opportunities. In
this area, which includes new drilling opportunities, there may be
a nearby well work-over opportunity. This nearby well is an
existing producer with mechanical challenges".
For the immediate future, Forest
Gate will turn its attention to a well-twinning opportunity
it has in Cedar Valley,
Iron County Utah where it owns
121,000 gross acres.
The initial program in Iron
County would involve drilling a 5,000-foot Rush Lake prospect targeting by-passed Dakota
sand pay plus deeper Navajo sands. This shallow drilling target
would be a re-drill to a 1948 Dakota Sandstone discovery at a depth
of 2,800 feet, which was never put in production.
All figures stated herein have been reported by Don Vandergrift, President and Chief Operating
Officer of Forest Gate Energy Inc.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil & gas
exploration and production company trading on the TSX Venture
Exchange under the symbol FGE with 28.2 million shares outstanding.
The Company is seeking to increase shareholder value through
participation and development of oil & gas exploration and
production projects in Canada and
internationally.
FORWARD-LOOKING STATEMENTS
Certain statements regarding Forest
Gate, including management's assessments of future plans and
operations and Forest Gate's
anticipated financial performance, may constitute forward-looking
statements under applicable securities laws and necessarily involve
known and unknown risks and uncertainties, most of which are beyond
Forest Gate's control. These risks
may cause actual financial and operating results, performance,
levels of activity and achievements to differ materially from those
expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of
general economic conditions in Canada and the
United States; industry conditions including changes in laws
and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced;
competition; the lack of availability of qualified personnel;
fluctuations in commodity prices; the results of exploration and
development drilling and related activities; imprecision in reserve
estimates; the production and growth potential of Forest Gate's various assets; fluctuations in
foreign exchange or interest rates; the ability to access
sufficient capital from internal and external sources; and
obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or the accuracy
of this release. This transaction is subject to TSX Venture
Exchange Approval.
SOURCE FOREST GATE ENERGY INC.