Forent Energy has fulfilled the earning commitments of the Farm-In Agreement with EOG Resources Canada Inc. ("EOG") and another Major Canadian Energy Company on the Alton Block in Nova Scotia and has agreed to take over ownership and operatorship of the Block.
The Alton Block is a 740,000 acre petroleum and natural gas holding secured under a Nova Scotia Exploration License first issued to EOG in February 2003. The block encompasses two oil and gas reef prone fairways in an area of some 250,000 acres on the south portion of the block and 150,000 acres of thick shale deposition to the north, which is a continuation of the shale where gas was discovered on offsetting lands.
Forent Energy Inc. became a public company effective December 18, 2008 as a result of the reverse takeover of Seriatim Ventures Inc. The Company holds exploration licenses on both the Alton (740,000 acres) and the Beech Hill (466,000 acres) Blocks in Nova Scotia, making it the largest on-shore oil and gas license holder in the province, with more than 1.2 million acres.
In 2008 Forent acquired approximately 48 km of 2D seismic and purchased an additional 200 km seismic for the Alton and Beech Hill Blocks. In addition, the Company completed its Alton farm-in commitment by drilling the Camden #1 shale gas well to a depth of 1,464 metres. This well provided evidence of the continuation of the shale fairway, proven to exist on adjacent lands being developed under a recently issued Production Agreement. The Company plans to continue to explore for oil and gas on the Alton and Beech Hill Blocks during 2009, from its extensive inventory of high netback oil and natural gas projects. Such opportunities include the substantial Horton shale gas resource play, as well as, conventional Gays River carbonate oil & gas targets and Horton shale oil. The Company's Nova Scotia properties are bisected by the Maritimes & Northeast natural gas pipeline, which provides the needed market for gas developments and there is access to oil refineries to process any future crude oil discoveries.
In Alberta, Forent is continuing to develop its low cost, low risk natural gas plays. The Ferrybank 8-32 (45% net interest) glauconite gas well that the company drilled in 2007 was recompleted with a 20 tonne frac that, after clean-up, flowed at 1.2 mmcf/d on a 48 hour test. The company is engaged in the equipping and tie-in of this well which is anticipated to significantly increase Forent's cash flow. The Company's Alberta production is largely natural gas and is intended to cover the majority of its general and administrative expenses so that Forent may focus its attention on the development of its Nova Scotia prospects.
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