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September 26 2006
3D Seismic Programme results at Sampaguita gas discovery indicates world class gas asset

Forum Energy (AIM: FEP), the AIM listed oil, gas, and coal exploration and production company focused on the Philippines, is pleased to announce that the interpretation of the 3D seismic programme at the Sampaguita gas discovery indicates a world class gas accumulation with potential reserves of up to 20 TCF (“Trillion Cubic Feet”) Forum has 100% of the equity in the licence in which the Sampaguita offshore gas discovery is situated. The block is located off the North West coast of Palawan Island in the Philippines.

Results from the 3D seismic programme and its interpretation performed by independent consultants, Count Geophysics Limited, confirmed a minimum of 3.4 TCF proven gas in place from sands tested in the 3 wells drilled to-date and the extension of the structure to a possible closure of 290 sq. km giving an upside reserves in these sands alone of 10 TCF.

Additional untested sands, which are known to contain gas, could double this figure. The block also contains 8 additional leads which require further work that has the potential to add a further 20 TCF in aggregate.

Forum is in the process of converting the licence to a service contract and plans to drill an appraisal well as soon as possible.

Russell Harvey, CEO of Forum Energy Plc commented:

"We are extremely encouraged by the results of the seismic programme, which confirm that the Company has an asset of great potential. We intend to push forward with appraisal at the earliest opportunity to bring this gas field to commerciality. Given the potential reserve size and proximity to the Asian markets it is an ideal candidate for an LNG facility."

Enquiries:

Russell Harvey, Forum Energy Plc:
+44 (0) 19 3244 5344

Mark Froggatt, Noble & Company Ltd:
+44 (0) 20 7763 2200

James Henderson, Pelham Public Relations:
+44 (0) 20 7743 6673
+44 (0) 77 7444 4163

Charles Vivian, Pelham Public Relations:
+44 (0) 20 7743 6672
+44 (0) 79 7729 7903

1. In accordance with the AIM Rules, the information in this report has been reviewed and signed off by Russell Harvey, Chief Executive Officer at Forum, who is a member of the Energy Institute and who has at least 5 years relevant experience within the sector.

2. Update disclosure table of Sampaguita gas discovery reserves.

seismic-results-sampaguita-gas_IMG2

Key:
1 Gas-in-place
2 Trillion cubic feet
3 Forum has 100% interest in GSEC 101

 
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