Forest Gate Creating Subsidiary to Pursue African Oil Opportunities
Calgary, Alberta--(Newsfile Corp. - April 16, 2013) - Forest Gate Energy (TSXV: FGE) reports that it is creating a wholly-owned subsidiary to conduct its business while the parent company works to re-organize and remove the cease-trade order on its securities.
The new company provisionally to be named FGE Opportunities and to be incorporated in an offshore jurisdiction.
Following the formation of the subsidiary, Forest Gate Energy will transfer 100 percent ownership of its West African interests to FGE Opportunities in exchange for 100% of the shares. FGE Opportunities will have the ability to issue finance for its own operations and to pursue acquisitions.
The company says it believes this move also offers current Forest Gate shareholders the opportunity to acquire direct ownership of the West African opportunities.
Forest Gate Energy's current West African interests consist of a twenty percent ownership in the on-shore and off-shore petroleum rights in Southern Cameroons (Republic of Cameroon), and an option to acquire a 49 percent interest in three on-shore blocks in the Republic of Cabinda (Angola). The Cabinda area is a prolific oil-producing area.
As previously reported (see Forest Gate news releases of January 30 and March 19, 2013), the agreement regarding the interest in the Republic of Cabinda is with Kilimanjaro Capital, Calgary, a private company that acquires interests in emerging African nations.
The foregoing transactions may be subject to corporate and securities regulatory approvals.
In Cabinda, former Sonangol (the Angolan Government-owned oil company) licensee, ROC Oil, London, UK, drilled a test well on the south block. ROC Oil is no longer involved in Cabinda. According to Kilimanjaro, the Central and North Blocks are ready for development but security issues have held this back. The Cabinda area, in general, is largely unexplored for the same reason. According to Sonangol, the Central Block "is located onshore Congo Basin adjacent to the prolific offshore Block O. The area size of the block is 1425 square kilometres. The previous exploration effort in this region was in the early 1960s. Numerous leads are recognized in Pre-salt Aptian (Chela), Barremian, (Toca, Vovo) and Neocomian (Lucula) intervals.''
This agreement in Southern Cameroons is also with Kilimanjaro Capital. Kilimanjaro Capital is the signatory of an Assignment Agreement with the recognized Government of Southern Cameroons, which provides exclusive exploration and exploitation rights and covers an area of approximately 43,000 square kilometres, including the Northern and Southern provinces, the Bakassi Peninsula, and future off-shore rights.
According to the Government of Southern Cameroons, oil exploration in the disputed Bakassi region could commence in a matter of months along with mineral exploration in other parts of the country.
The Southern Cameroons is known to host significant petroleum reserves. Most of Cameroon's known commercial oil reserves are located in the off-shore Rio Del Rey basin. According to a Wood Mackenzie report of October 2011, Cameroon hosts liquid reserves of 0.21 billion barrels and has liquid production of 53,000 barrels per day.
Glencore Exploration Cameroon Ltd., Bowleven plc, Kosmos Energy and Sinopec are believed to be exploring and or producing in or near the area.
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