Press release from Marketwire
Forent Announces Initiation of Mervin Capital Program and the Sale of Non-Core Thompson Lake Property
Tuesday, August 02, 2011
Forent Announces Initiation of Mervin Capital Program and the Sale of Non-Core Thompson Lake Property07:00 EDT Tuesday, August 02, 2011CALGARY, ALBERTA--(Marketwire - Aug. 2, 2011) - Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent" or the "Company") is pleased to announce the close of the sale of its non-core 35% working interest in two oil wells located near Provost, Alberta.The properties were acquired by Tallgrass Energy Corp. for $750,000, with an effective date of June 1, 2011. The wells are currently producing approximately 14 bbls of oil per day, net to Forent.Forent intends to use the funds from the disposition to tie in its producing wells at Mervin Saskatchewan to the Company's salt water disposal well and to increase its ability to handle additional third party water at the salt water disposal well. The surface land access issues previously announced, have now been resolved and the company expects to have the tie-in and other work completed by early September. The Company estimates that it will save approximately $70,000 a month from the tie-in, as a result of reduced operating expenses. Forent also expects to increase its third party water disposal revenues and will endeavour to increase its Mervin production, once the wells are tied-in.Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN.V".Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements such as the estimates of reserves, the references to Forent's exploration program and drilling program and capital expenditures relating to, and timing of, such programs are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward- looking statements. There are uncertainties inherent in forward-looking information, including factors beyond Forent's control, and no assurance can be given that the programs will be completed on time, on budget or at all. In addition, there are numerous uncertainties inherent in estimating reserves, including many factors beyond Forent's control, and no assurance can be given that the indicated level of reserves or the recovery thereof will be realized. Forent undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in Forent's filings with Canadian securities regulators, which filings are available at www.sedar.com.The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet equal to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.FOR FURTHER INFORMATION PLEASE CONTACT: Tom LesterForent Energy Ltd.President, CEO & CFO(403) 262-9444 #firstname.lastname@example.orgThe 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.