Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Energy Closes Private Placement
Montreal, QC – July 16, 2009 –Forest Gate Energy Inc. (the "Company") announced today that it has completed a non-brokered private placement and has issued 1,016,500 Units at a price of $0.15 per Unit, for total gross proceeds of $152,475. Total Shares Outstanding following this private placement will be 15,248,733.
Each Unit (“Unit”) consists of one common share ("Share") and one common share purchase warrant ("Warrant") allowing the holder to subscribe for one Share at a price of $0.20 for a period of two years from the subscription date. The Units will be subject to a four-month hold period.
Forest Gate paid $7,073 in commissions and finder's fees, and issued 47,150 Broker Warrants in connection with this private placement, in accordance with the rules and regulations of the TSXV. Conditional acceptance to this private placement was issued by the TSX Venture Exchange on June 4, 2009.
The Company intends to utilize the proceeds from the private placement for general working capital purposes.
About Forest Gate Energy
Forest Gate Energy Inc. is an oil & gas exploration and production company. The Company is seeking to increase shareholder value through participation and development of oil & gas exploration and production projects in Canada and internationally.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
FORWARD-LOOKING STATEMENTS
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release. This transaction is subject to TSX Venture Exchange Approval.
