Forum, the UK incorporated majority Filipino held Oil and Gas Exploration and Production Company with a focus on the Philippines, announced its Audited Results for the year ended December 31, 2008.
- Agreed Work Programme with the Philippine Department of Energy (DOE) for GSEC101, Forum's principal asset, and continued to finalise conversion of this licence to a full Service Contract;
- Finalised farm-out of a 30% interest in GSEC101 to a local partner Monte Oro Resources & Energy, Inc. (Monte Oro) in which Forum benefited from an immediate cash payment of US$1.7million, securing Monte Oro's involvement and thereby qualifying the Joint Venture for the Filipino Participation Incentive Allowance (FPIA) which entitles the Company to 7.5% of gross revenues, prior to sharing revenues with the government;
- Galoc production commencement;
- Signed Gas Sale and Purchase Agreement (GSPA) on the development of the Libertad Gas Field in Cebu; and
- Initiated programme to review multiple international opportunities in view of Company's enhanced status through Philex Mining Corporation's investment.
Financial and Corporate Highlights
- Working capital of US$3.9 million as of 31 December 2008 (US$6.4 million – 2007).
- Shareholders' equity of US$45 million as of 31 December 2008 (US$49 million -2007).
- Revenues of US$0.7 million in 2008 (US$0.9 million – 2007).
- Board re-structured and enhanced with appointment of Walter Brown as CEO; and
- Fixed overhead costs substantially reduced going forward.
"Forum Energy made significant progress in 2008 and has been strengthened by the majority shareholding of Philex Mining Corporation who holds 61.44% (directly and indirectly) of the shares in Forum Energy and who brings significant Filipino involvement to the Company as well as the security of a large balance sheet," said Walter Brown, Chief Executive Officer of Forum. "We look forward to further progress in 2009 with the whole of Forum's promising portfolio including GSEC101, Forum's principal asset"
The Company's principal asset is a 70% interest in GSEC101, an offshore petroleum licence situated west of Palawan Island in the South China Sea. In 2006, results from a 248-square kilometre 3D seismic survey over the licence area indicated 3.4TCF gas-in-place (GIP).