CALGARY, ALBERTA -- (Marketwired) -- 08/27/13 -- Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE: FEN) is pleased to announce that it has filed its unaudited condensed Interim Financial Statements and Management's Discussion & Analysis, for the period ending June 30, 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. In addition, Forent announces the following corporate operational updates.
Second Quarter Results
Total revenue from petroleum sales and operations increased to $264k for the first 6 months of 2013 compared to $218k for the same time period of 2012 (an increase of 21%) due to higher natural gas price realization and decreased royalty expenses. Daily production decreased to 58 boe/d from 78 boe/d (-26%) over the first 6 months of 2012 as a result of normal production declines of the Ferrybank and Huxley pools. Operating netbacks improved to $2.03/boe from - $0.32/boe for the same time period. The operating results of the Mervin field and the resulting gain from the divestiture of the property in the first quarter of 2013 have been recorded in discontinued operations for the periods presented. Due to this material change in Forent's operating properties, year over year comparative analysis of the reserves, production and financial statements may not yield meaningful results.
During the first six months of 2013, the Company spent $389k on operations associated with the Alton Block in Nova Scotia and the Montgomery Block in Alberta. These expenditures included the abandonment of the Alton #1 exploration well and extending the mineral rights tenure of our lands in Montgomery.
At Alton in Nova Scotia, Forent successfully completed the abandonment of Alton #1 well in June 2013, to ensure the capital expended on the well was fully qualified as flow-through expenditures. The wellbore was left in a state that future re-entry could be easily accommodated should further testing be warranted. While the Alton #1 well encountered several significant natural gas shows during the drilling of the well and live oil was found in the mud tank while drilling through the main Gays River Reef target, due to mineralization of the reef pore space it was determined that the well would not be able to produce economically. The costs to abandon the well will be applied against the Company's outstanding work commitment on the Block.
Forent has invested $10.6 million on the Alton Block since 2007 and we remain excited by the potential these lands offer. In addition to 8 geophysical anomalies targeting Gays River reef locations, on the northern portion of the Alton Block Forent sees significant potential for gas reserves in the Horton Shale. Data obtained from operators offsetting Forent's acreage indicates a significant shale gas potential exists on these lands. Forent is actively looking for a joint venture partner to assist with the continued exploration on the Alton Block.
Most Popular Stories
- Dell Offers Undisclosed Number of Employee Buyouts
- Saab Gets Back into the Game; U.S. Auto Sales Soar
- Authorities Close to Deal with JPMorgan Chase over Madoff Response
- Apple Activates Customer-Tracking iBeacon
- 2013 Tech Gift Guide: iPad Mini Still Hot; Chromecast a Great Low-Cost Option
- A Biography of Jonathan Ive, Apple's Creative Chief
- It's No Yolk: Food-tech Startups Take Aim at Replacing Eggs
- U.S. Stocks Rise on Sysco Acquisition