Shares outstanding: 29.1 Million
Symbol & exchange: FGE-V
MONTREAL, April 6 /PRNewswire-FirstCall/ - Forest Gate
Energy Inc. reports that it has acquired a working interest in a
recompletion oil well located in Grand
County, Utah.
Forest Gate will earn a 25%
working interest in a suspended producing oil well by covering 100%
of the recompletion cost. The 1,081-acre lease also includes
production equipment such as a pump jack and storage tanks.
Forest Gate will receive 50% of the
oil and gas revenue until it recoups 100% of the recompletion cost
estimated at $380,000.
The well was initially drilled to a depth of approximately 4600
feet and because of Federal lease stipulations, completion was not
attempted until October 12, 2007.
During the drilling operations mud loss and a poor cement job
caused formation damage and minimized the evaluation of the lower
Wingate. The well was then temporarily suspended.
Forest Gate is planning to
evaluate 3 zones: the Upper Wingate, Kayenta and the Navajo
Sandstone. If commercial production is established in any zone,
completion efforts of other zones will be deferred.
"This recompletion project offers Forest
Gate a low-risk oil well that we can recomplete in short
order," said Don Vandergrift,
Forest Gate's President and Chief
Operating Officer. "This well intersected hydrocarbon-bearing
formations and produced some oil from the lower Wingate Formation
before it was damaged", added Mr. Vandergrift.
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 29.1 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.
SOURCE FOREST GATE ENERGY INC.