Outlook for 2013
Forent has made significant progress in evaluating both asset and corporate merger opportunities during the first quarter of 2013. Several assets were evaluated however only a few were of sufficient quality to warrant an offer. While unsuccessful in securing any of these asset packages, Forents offers were competitive but other circumstances prevented closing of the deals. During the first quarter, Forent also evaluated a number of companies as potential merger candidates. Focus was directed towards companies with quality assets and strong balance sheets. We will continue to evaluate and submit proposals to replace the production loss from the sale of the Mervin property and restore operating cash flow. The cash flow generated from new operations will provide a foundation of steady operating funds and reserve base while Forent continues to advance our core projects in Montgomery, Alberta and Alton, Nova Scotia.
While the first well in the Montgomery block was intended as a regional test well, Forent anticipates that a longer term production test will occur after the reservoir recorders are removed and the pressure build up has been analyzed. We anticipate the reservoir recorders will be pulled from the wellbore in early June 2013 and the data will be analyzed to evaluate the effectiveness of the stimulation. This will provide valuable input for development of a production model and assist in the planning of future wells. In Montgomery, we will continue to work closely with our joint venture partner's technical team on analyzing the results of the 01-16-12-29W4 well and evaluate future drilling locations. We will continue to communicate with the landowners in the area and remain a good neighbor and joint venture partner.
In Nova Scotia it is anticipated the Alton # 1 standing wellbore will be abandoned in the second quarter of 2013 in order to ensure the capital expended on the well is fully qualified as flow through expenditures. The wellbore will be left in a state that future re-entry will be easily accommodated should further testing be warranted. Forent is actively seeking a joint venture partner to accelerate the drilling of the balance of the Gays River Reef structures identified and assist in further quantification of the shale gas potential of the area.
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forent Energy Ltd.
President & CEO
(403) 262-9444 #211
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