Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate to Forfeit its Interest in the Celtic Sea Project
Rescinds Plans to Proceed with Previously Announced Private Placement
Montreal, QC – September 4, 2008 - Forest Gate Resources Inc. (the "Company") announced today that the company has forfeited its 8.3888% working interest in the Celtic Sea project and therefore, the Company will not proceed with the private placement announced August 26, 2008.
Under the terms of the Joint Operating Agreement ("JOA") in respect of Irish Continental Shelf Standard Exploration License 3/07 (Blackrock Prospect) and Standard Exploration License 2/07 (Celtic Sea Prospects) dated June 29, 2007, the Company's failure to pay by September 1, 2008 the full amount of its June 3, 2008 cash call to the operator, Providence Resources p.l.c., has resulted in forfeiture of the Company's interest in the joint venture.
"Although every effort was made to continue financing this project, the condition of the capital markets made it impossible to fund our share of the Celtic Sea program", said Michael Judson, President and Chief Executive Officer of Forest Gate Resources Inc. "Our attention, for the time being, will now be focused on expanding our Canadian oil and gas production, a plan fully supported by many of our investors."
Forest Gate has a working interest in three Alberta properties: Ferrybank which has one oil producing well, Nevis which has four natural gas producing wells and Kelsey, which recently flowed approximately 265 thousand cubic feet of gas per day during the 48-hour flow test, with a tie-in location identified and plans for pipeline construction to begin immediately after surface rights and pipeline permit are acquired.
About the Company
Forest Gate Resources Inc. is an international oil & gas exploration company. The company is seeking to
increase shareholder value through participation and development of oil & gas exploration and production
projects in Ireland and Canada. The Company's shares trade under the symbol FGT on the TSX Venture
Exchange.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
About Forward-Looking Information and Statements
This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf. The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
