CALGARY, ALBERTA -- (Marketwired) -- 05/30/13 -- Forent Energy Ltd. (TSX VENTURE: FEN) ("Forent" or the "Company") is pleased to announce that it has filed its unaudited condensed Interim Financial Statements and Management's Discussion & Analysis, for the period ending March 31, 2013, with applicable securities regulatory authorities in Canada. Copies of these documents can be accessed under the Company's profile on the SEDAR website at www.sedar.com and on the Company's website www.forentenergy.com.
Overview of the First Quarter of 2013
During the first quarter of 2013, Forent undertook significant positive changes for the Company in regards to the closing of the sale of its Mervin property, changes in senior management and a $1.5 million private placement.
On February 1, 2013, the Company closed the sale of all its interests in its Mervin, Saskatchewan property for $5.5 million plus customary adjustments, resulting in a gain of $2.9 million over the carrying amount of the property and related liabilities, net of deferred taxes. The disposition of the property allowed Forent to realize a value that was comparable to the fair market value of the asset prior to the impairment in September of 2012 and in excess of the independently assigned proved plus probable value as of December 31, 2011. The proceeds of the sale have been allocated to ongoing capital requirements.
On February 22, 2013 Forent appointed Richard Wade as the new President and Chief Executive Officer to lead the Company into its next phase of growth. This change came as a result of the resignation of Thomas Lester the former interim President, CEO and CFO. Mr. Wade is a registered Professional Engineer in Alberta & Saskatchewan and brings to Forent a broad range of experience in drilling, completions, reserve evaluations and production operations. He also has a strong background in asset acquisitions and divestitures. Mr. Wade will be a key asset to the Company as Forent moves to acquire a base level of cash flow while exploiting both the Montgomery and Alton assets.
In March of 2013, Timothy Laska, P.Geol, joined Forent as Vice-President of Geology. Mr. Laska is a registered Professional Geologist with over 25 years of exploration and development experience across the Western Canada Sedimentary Basin. He has worked with Mr. Wade previously at Elk Point Resources, Western Gas Canada and Lario Oil and Gas. Mr. Laska has also previously worked with Forent's Vice-President of Exploration, Ian Shook, at PanCanadian Petroleum during a very successful exploration and development growth phase in PanCanadian's Drumheller district. The addition of Mr. Laska adds a key element to Forent's management team.
As a result of the production and cash flow impairment of the Mervin asset, Forent opened the year with a $1.2 million working capital deficiency, not including long-term assets and liabilities held for sale. In order to ensure adequate short term working capital and due to uncertainty regarding the ability and potential timing to close the Mervin sale, Forent initiated a financing transaction in earlier 2013 and completed the non-brokered financing of $1,500,000 on February 20, 2013.
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