Forent Energy Ltd. Announces $4.0 Million Crude Oil Acquisition

CALGARY, ALBERTA--(Marketwired - Nov. 12, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent") is pleased to announce an acquisition (the "Acquisition") of oil weighted production in the Company's core area of Twining near Three Hills, Alberta. The purchase price is $4.0 million less adjustments, subject to a 10% royalty with a put/call arrangement. The effective date of the Acquisition is August 1, 2015, with the closing expected in early December 2015.

The Acquisition

Forent will acquire over 70 gross (20 net) sections of land including producing oil and natural gas assets surrounding our core area of Twining. Current production from the Acquisition is approximately 250 barrels of oil equivalent per day ("boe/d") which is produced from the Pekisko formation. The oil is a high netback, medium gravity (29 degree API) crude.

The Acquisition is summarized as follows:

• Average production 250 boe/d (68% oil and liquids)
• Purchase price of $16,000 per flowing boe

1. Acquisition gross reserves (before royalties) by Sproule based on a July 31, 2015, mechanical update of the Sproule December 31, 2014 reserve report, prepared in accordance with NI 51-101.
2. Based on $4.0 million closing purchase price

Forent benefits from the Acquisition as follows:

• An increase of 100% to Forent's current production level
• An increase of 62% to Forent's proved developed producing reserves
• An increase of 108% to Forent's total proved plus probable producing reserves
• An increase of 2,000% to Forent's net land holdings in the Twining area
• The Acquisition is expected to lower Forent's general and administration per boe by 50%

Forent's team has identified significant upside including:

• 34 gross development drilling locations
• Stimulation of existing wells to enhance production
• Operational and facility synergies to improve efficiencies

The vendor reserved a 10% royalty on the lands and production. At the vendor's option, the royalty can be "put" (sold) to Forent in 1% increments for $150,000 per 1% in December 2015. Forent has a "call" (purchase right) until December 31, 2018, on any royalty not tendered by the vendor for $350,000 per 1% increment, minus any royalty payments paid. This structure provides additional flexibility to facilitate the transaction and allows both Forent and the vendor to realize future upside in the current low price environment.

This all cash acquisition is from an arm's length private company. No finder's fees are payable with respect to the Acquisition. Forent may use existing and acquisition bank lines, an acquisition facility, and/or a possible private placement financing to provide the required cash to close of approximately $3,300,000 after deposit and closing adjustments.

Robyn Lore, CEO stated, "At the end of Q2 2015 I joined Forent, a company with a very experienced, supportive board and a strong technical team. The innovative structure of this transaction demonstrates Forent's ability to make an acquisition attractive for both the vendor and Forent in the current low price environment. Our business plan is to continue assembling assets with solid production and large reserves in place. Production enhancements and low risk development opportunities will grow the company and position Forent to benefit significantly from an oil price recovery."

ADVISORY: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. 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. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

BOE presentation: Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

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.