Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today announces its audited results for the year ended 31 December 2009.   

OPERATIONAL HIGHLIGHTS   

• Company-changing development via award of Service Contract 72 (SC 72) over the GSEC101 licence area on 15 February 2010;
• Galoc production of 2.5 million barrels gross in 2009; expected to stabilise at 2.3 million barrels gross in 2010; Forum Energy has a 2.27% interest in the field;
• Completion of rationalization of non-core coal assets through sale of Forum Cebu Coal Corporation for US$1 million in cash;
• Department of Energy approval of Gas Sale and Purchase Agreement (GSPA) on the development of the Libertad Gas Field in Cebu; and
• Continued programme to review multiple domestic and international opportunities.   

FINANCIAL AND CORPORATE HIGHLIGHTS

• Net cash and cash equivalents of US$4.1million as at 31 December 2009 (2008: US$2.6 million);
• Shareholders’ equity of US$44 million as of 31 December 2009 (2008: US$45 million);
• Revenues of US$1.8 million in 2009 (2008: US$0.7 million); and
• Fixed overhead costs reduced by 41% in 2009 compared to 2008.  

Walter Brown, Chief Executive Officer, commented:   
“Forum Energy is extremely well placed to take the fullest advantage of its SC72 asset. Forum now has the ability to move forward with the development of the potentially world class gas discovery at SC72 and to move into the appraisal process. We believe that this will create material value for our shareholders and we look forward to releasing more specific details shortly.”   

The technical information in this announcement has been reviewed and approved by Count Geophysics Limited and Oilfield Production Consultants (OPC) Limited, both independent consultancies which performed the interpretation of the Company’s 3D and 2D seismic programmes.     

For further information please contact:
Forum Energy Plc
Andrew Mullins, Executive Director               Tel: +44 (0) 1932 445 344  

Execution Noble & Company Limited
Harry Stockdale / John Llewellyn-Lloyd         Tel: +44 (0) 20 7456 9191  

Pelham Bell Pottinger
Nick Lambert / Henry Lerwill                         Tel: +44 (0) 20 7337 1500


Chief Executive's Statement, Financial Statements & Notes
Please see the 2009 results PDF to read the full report