Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Amends Participation in Saskatchewan Oil & Gas Licenses – Additional Sections Acquired
CALGARY, Alberta, July 21, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that it has amended its participation in the oil and gas licenses located in areas known as Rangeview, Divide and Katherine in the south western region of the Province of Saskatchewan.
As a result of this arrangement with Trafina Energy Ltd., the majority owner and operator of the oil and gas licenses, Forest Gate will reduce its non-operated ownership from a 20 percent undivided working interest to a 10 percent undivided working interest in the licenses, which encompass the original acreage, as well as seven additional sections recently acquired in south western Saskatchewan. The remaining 90 percent interest is owned and operated by Trafina Energy.
With this arrangement, Forest Gate’s ten percent interest has now been expanded to include additional Petroleum and Natural Gas Leases as part of an Inclusion Agreement signed with Trafina on July 1, 2011. These include seven new sections offsetting the existing land block in south western Saskatchewan.
By reducing its participation and the associated financial commitments to 10 percent, Forest Gate will use the savings from the operating costs to pursue other oil and gas opportunities with the ultimate goal of becoming an operator on its own properties.
"The original acquisition has provided Forest Gate with a great opportunity to expand its oil and gas interests in Western Canada and allowed us to make vital new contacts as we pursue our plans to eventually become an operator," said Michael Judson, President Chief and Executive Officer of Forest Gate. "Reducing our capital commitments to 10% now makes it less demanding in meeting our obligations, as we continue with our partner to develop the properties. And with the newly acquired sections, Forest Gate remains poised to achieve its target goals of production over the next eighteen months."
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production, and non-energy resource company trading on the TSX Venture Exchange under the symbol FGE. The Company is seeking to increase shareholder value through participation and development of energy and other resources 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.
