CALGARY, ALBERTA--(Marketwired - Jan. 2, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE:FEN) confirms the interim closing on December 31, 2013 of a non-brokered private placement of flow-through common shares (the "Flow-Through Shares"). A total of 6,050,000 Flow-Through Shares were issued at a price of $0.10 per common share, for gross proceeds of $605,000. Insiders, including W. Brett Wilson, the Company's Chairman, purchased 3,850,000 Flow-Through Shares in the Private Placement. The Funds will be used for crude oil development expenditures (CDE), which will qualify as renounceable exploration expenses ("CEE"), on its recently acquired central Alberta properties.
Operationally, Forent is pleased to confirm that its application for down-spacing on the Twining assets has been approved by the Alberta Energy Regulator, accelerating the in-fill drilling plans. Engineering and AFE costing has been completed for the proposed free-water knockout at Provost enabling Forent to seek partner approval to proceed in January, 2014. As well, a surface location has been confirmed and acquired at Montgomery, permitting Forent's industry partner to finalize rig mobilization plans and commencement of a significant exploration test well. (See www.forentenergy.com for the current near term capital program details.)
In light of the foregoing operational opportunities, Forent has elected to continue to accept further orders up to the $1.0 million of total Flow-Through Shares it can issue on the 2014 CDE to CEE conversion until January 29, 2014, or until fully subscribed. Forent also confirms that it will also consider the placement of up to $500,000 of straight common shares to also close in January 2014 based on market pricing conditions.
The private placements are subject to applicable regulatory and TSX Venture Exchange approval and completion of definitive documentation. Common shares issued under the private placements will be restricted from resale for a four month period from closing under Canadian securities laws.
Forent has approximately 181,565,715 common shares issued and outstanding which trade on the TSX Venture Exchange under the symbol "FEN".
ADVISORY: Certain information in this news release, including the anticipated closing of the Private Placement, the use of the proceeds to incur Canadian Exploration Expenses, and the drilling of wells at the Company's Wayne, Twinning and Montgomery properties, constitute forward-looking statements under applicable securities laws. Although Forent believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Forent can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Forent is not able to obtain the necessary stock exchange approval on the timeline it has planned. The Private Placement will not be completed at all if this approval is not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per 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. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
NEITHER THE 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 RELEASE.