SHARES OUTSTANDING: 25 MILLION SYMBOL & EXCHANGE: FGE-V
MONTREAL, Jan. 25 /PRNewswire-FirstCall/ - Forest Gate Energy Inc. reports that it has mobilized a rig to drill for oil and gas on its Crescent Junction property in Grand County, Utah, and is expected to spud on or before January 31st, 2010.
Forest Gate is drilling a 3,600-foot well, targeting the Wingate formation, which is an eolian (sand dune) sandstone of Jurassic age with a potential thickness of 800 ft. The Wingate formation target has been defined by 3D seismic.
Drilling results on this well, located in Section 3, T22S-R19E, located approximately 29.8 miles East of Green River, Utah, are expected by the end of February, 2010. The operator is Tidewater Oil & Gas Company, LLC, Denver, Colorado.
The target has three-way closure with truncation against a salt wall and is up-dip of a recently completed well with oil reported in the Wingate formation. Cost of a completed producer is US$733,288 while the dry hole cost is at a turnkey price of $400,000 and will earn Forest Gate 37.5% interest in 2,160 gross acres. The program is financed with proceeds from the company's recent financing.
"We are extremely pleased to be working with Tidewater to drill Forest Gate's first target on our recently acquired property," said Don Vandergrift, Forest Gate's President and Chief Operating Officer. "Success on this well will open a vast opportunity to explore and develop Forest Gate's substantial property in Utah."
In a previous news release, dated January 19, 2010, Forest Gate had announced that it had enhanced its originally acquired 5000 gross acres with an additional 116,000 gross acres, bringing its total land holding in the area to 121,000 gross acres and 31,335 net acres in Utah.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil & gas exploration and production company trading on the TSX Venture Exchange under the symbol FGE with 25 million shares outstanding. The Company is seeking to increase shareholder value through participation and development of oil & gas exploration and production projects in Canada and internationally.
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. This transaction is subject to TSX Venture Exchange Approval.
SOURCE FOREST GATE ENERGY INC.