Shares outstanding: 30.5 Million
Symbol & exchange: FGE-V
MONTREAL, May 11 /PRNewswire-FirstCall/ - Forest Gate
Energy Inc. reports that it will focus on its Rush Lake oil prospect in Cedar Valley, Iron
County, Utah, during the immediate term.
As previously announced in the initial December 9, 2009 and subsequent January 19, 2010 Forest Gate news releases, the
Rush Lake prospect is a
shallow-drilling target, and is a re-drill target to a 1948 Dakota
Sandstone discovery made at a depth of 2800 feet and never put into
production.
This Rush Lake prospect is
based on by-passed pay from well logs. A re-assessment of published
regional geological and seismic data has led to the identification
of a potentially larger Dakota play.
The initial 5000-foot well will test the Dakota Formation and a
deeper Navajo target at a cost of $800,000, or $1.2
million if completed (see previous news releases:
December 9, 2009 and January 19, 2010). Permitting applications for
drilling at the Rush Lake prospect
have been filed.
As a result of this change in strategy, Forest Gate will not be pursuing the well
recompletion project (announced on April 6,
2010) in Grand County,
Utah, and will instead apply all of its resources to the
development of Iron County, Utah,
where Forest Gate owns 121,000 gross
acres (30,500 net) in this prospect area.
"We realized that we could create more value for the company by
drilling in an area where we have a substantially larger land
position," said Michael Judson,
Forest Gate's Chief Executive
Officer.
In other news, Forest Gate wishes
to announce the departure of Mr. Donald
Vandergrift, who was formerly the company's President and
Chief Operating Officer. Mr. Vandergrift has also resigned as a
director of the company.
Mr. Vandergrift, through his private company Vanterra Energy
Inc., will remain operator on Forest
Gate's Rush Lake
prospect.
"Don has been helpful in enabling Forest
Gate to acquire the company's significant acreage positions
in Utah and Arizona, and for helping source the huge
library of geological and geophysical data," said Michael Judson. "As Operator on these two
acreages, Don will continue to help Forest
Gate unlock their value."
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 30.5 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.