Forum Energy Completes Placement Ahead of AIM Listing
FEC Resources reports that Forum Energy Plc, the UK energy group with gas, oil and coal assets in the Philippines, of which FEC Resources is a major shareholder has announced the completion of a second-round fund raising which saw key institutions invest £11.0 million (US$19.35m) for 36% of the company at £1.12p (US$1.97) per share. An earlier placing in May raised approximately £3.4 million (US$5.98 million) at £1.00p (US$1.76) per share.
Forum's assets include the highly promising Sampaguita gas discovery in the Reed Bank offshore license area, the SC 40 (Cebu) license with known onshore and offshore gas and oil discoveries, and two coal operating contracts on Cebu Island. The company has estimated potential reserves from three discoveries totalling some 2,330 BCF of gas and proven and probable coal reserves of 4.9 million tons.
The company expects to start generating gas and coal production revenues during the first half of next year, and operates in a country where energy development is a government priority.
Approximately 27.2 million shares will be admitted to AIM, at £1.12p (US$1.97) per share, valuing the company at £30 million (US$52.78 million). Following the placement FEC Resources, Inc. will be the largest single shareholder with a 37.6% stake in the business valued at approximately US$20m.
Forum Energy Plc shares will commence trading on the AIM market on August 2nd.
"We are delighted that Forum Energy Plc has successfully closed this substantial round of fund-raising. FEC Resources shareholders will benefit greatly from the accelerated development of the Philippine Oil, Gas and Coal assets of Forum Energy Plc through our significant shareholding in the business" commented Larry W. Youell, President & CEO.
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