Saturday, January 19, 2013

Forent Energy announces sale of Mervin heavy oil property and Montgomery update

Forent Energy Ltd. (TSX VENTURE:FEN) (?Forent?) or the ?Company?) is pleased to provide the following corporate update.
Forent has signed an agreement to sell its Mervin heavy oil property to a major heavy oil operator for $5.5 million, subject to closing adjustments. The Mervin disposition has an effective date of December 31, 2012 and is expected to close at the end of January. The Mervin heavy oil property represents substantially all of Forent?s producing crude oil reserves. At the present time, Forent has a working capital deficit estimated to be $1,000,000 and no bank debt. The Company intends to use the proceeds from the sale of its Mervin property to fund working capital and future corporate growth at its Montgomery exploration property in southern Alberta and the 514,000 acre Alton Block in Nova Scotia. The Company has invested more than $11 million in in the Montgomery and Alton opportunities. Both Montgomery and the Alton Block present significant growth opportunities for the Company?s shareholders.

Forent is very excited about its 29 section Montgomery exploration property in southern Alberta where the Company?s partner, BlackShale Resources, Inc. (?BlackShale?), completed the drilling of the first well on these lands in late December. The well was drilled and cased to the base of the Mannville Formation at 3,227 metres. Core data and a full suite of conventional and specialized petrophysical logs were run over the entire well bore for an analysis of unconventional and conventional hydrocarbon potential. Additional evaluation of the core and log data in the vertical well bore will occur over the next several months by both BlackShale and Forent in order to determine go forward plans.

Shares of Forent trade on the TSX Venture Exchange under the symbol ?FEN?.

Source: Marketwire

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Source: http://www.yourindustrynews.com/blog/?p=17798

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