Forum Makes Gas Discovery with Forum-2X Well

Forum Energy has made an onshore gas discovery in the company's Service Contract 40 block in the Philippines in northern Cebu. Forum has completed an open-hole flow-test of its Forum-2X well in Barangay Maya, Municipality of Daanbantayan, Cebu. The well was drilled to a total depth of 1,732 ft. The well flowed up to 217,000 standard cubic feet of gas per day through a half-inch choke with an initial pre-flow pressure of about 700 pounds per square inch (psi) and a flowing pressure of 350 psi. The test has been temporarily suspended due to the accumulation of sediments inside the well that restricted the free flow of gas from the reservoir. Further testing and drilling are needed to confirm whether or not the gas accumulation can be commercially produced.

The operator is now cleaning the well in preparation for the subsequent installation of hole casing at the lower section of the well for the conduct of conventional flow tests over a possible 34-foot net gas-bearing zone once the necessary equipment arrives.

The drilling of the Forum-2X well was started last September 12, 2003 and is the second of three wells programmed for drilling this year. It was drilled adjacent to the first well, Forum-1X. The Forum-1X well which reached a total depth of 2,000 ft was temporarily suspended after encountering technical problems and will be re-entered at a future date in order to conduct tests on the potentially hydrocarbon-bearing upper zones.

A third well, Forum-3X, also known as CMB-5, is planned for drilling using the company-owned rig in November 2003."

Larry Youell, President & CEO of Forum said: "The results so far of exploration well Forum 2X indicate a significant gas discovery in our onshore area of Northern Cebu, with commercial potential to contribute to the growing power and energy needs of Cebu.

"Forum-3X well will be drilled to determine the lateral extent of the reservoirs identified at the Forum-1X and Forum 2X wells. We are optimistic that the hydrocarbon bearing reservoirs encountered could have the considerable lateral distribution and volume necessary for a viable oil and gas production scenario.

"We are obviously satisfied at these preliminary results. However, most significant, is that the discovery of a thick gas bearing sandstone layer has also considerably improved the potential of our other prospects to find recoverable reserves in the other target areas within Forum's SC40 contract."