In conjunction with the transfer of the FEI asset to this new company, Sterling Energy's GSEC101 Gas asset has also been transferred to FEP through an agreement with the AIM listed UK Company. Sterling is one of the world's fastest growing Oil and Gas companies and has a current market capitalization of over US$400m. The GSEC101 license contains the Sampaguita gas discovery -- the potential gas reserves of the Sampaguita field have been assessed by PGS reservoir consultants (UK) Limited to be approximately 2.3 TCF (trillion cubic feet).
Following these asset transfers and a recently committed pre-IPO financing for FEP of approximately US$6.2m, Forum holds a 57.9% interest in the new company whilst Sterling holds 23.2%. FEP will subsequently apply for admission to the Alternative Investment Market (AIM) of the London Stock Exchange in conjunction with a second round IPO financing estimated to raise approximately US$27m of additional funds.
Potential unrisked reserves estimates for the seven prospects and three discoveries within the licenses held under the newly formed company (Forum Energy Plc) total some 900 mmbbls in the oil case or 5,500 BCF in the gas case. On a risked basis, estimated potential reserves from the three discoveries sum to 2,330 BCF of gas and estimated risked reserves from prospects within the licenses sum to 93 mmbbls or 320 BCF in a gas case. Proven and probable coal reserves are 4.9 million tonnes.
"This transaction will deliver accelerated growth and value to both the company and our shareholders. Not only will the FEI assets receive fast-track development as a result of the considerable investment from London-based institutional investors, but the company will also additionally benefit from exposure to the potentially world class GSEC101 asset. FEP has already received commitments for approximately US$6.2m and an aggressive work program in the Philippines is underway commencing with a seismic survey of the Central Tanon prospect offshore SC40. Updates on the operations in the Philippines will be released on an ongoing basis by FEP and in turn by Forum Energy Corporation" commented Larry W. Youell, President & CEO.
Most Popular Articles