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 2010.   

OPERATIONAL HIGHLIGHTS   

• Conversion of the GSEC101 licence to Service Contract 72  in February 2010
• First sub-phase work programme ongoing and 2D and 3D seismic surveys on track for completion within Q1 2011
• Galoc production of 61,000 barrels in 2010 (net to Forum) and expected 40,000 barrels (net to Forum) in 2011. Forum has a 2.27% interest in the Galoc field   

FINANCIAL AND CORPORATE HIGHLIGHTS   

• Revenues of US$6.1 million in 2010 (US$1.8 million – 2009)
• Gross Profit of US$2.1 million in 2010 (US$0.2 million – 2009)
• Fixed overhead costs US$2.4 million in 2010 (US$2.6 million – 2009)
• Working capital of US$1.7 million as of 31 December 2010 (US$4.1 million – 2009)
• Facility Agreement with Philex Mining Corporation for US$10 million to be utilized within 3 years
• Shareholders’ equity of US$44 million as of 31 December 2010 (US$44 million – 2009)

Robin Nicholson, Executive Chairman, commented:

“The main development in 2010 was the final conversion of the GSEC101 licence area to a Service Contract in February 2010 and the implementation of the first sub-phase work programme which includes a further 550 Km2of 3D seismic and 2,200 line Km of 2D seismic, expected to be completed within Q1 2011. In addition, the Company progressed discussions with potential strategic partners. A facility agreement with Philex Mining for US$10 million has enabled Forum to progress the development of its principal asset and we look forward to further developments at a critical point in the Company’s development.”  

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  

Executive Chairman's Statement, Financial Statements & Notes
Please see the 2010 results PDF to read the full report