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.
About Forest Gate Energy:
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production company trading on the TSX Venture Exchange under the symbol FGE.
FOR MORE INFORMATION PLEASE CONTACT:
MICHAEL JUDSON, CEO
1-866-666-3040, ext.222
MJUDSON@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.
