Forum announced 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. in August 2007.
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 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.
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