Forum Energy plc is pleased to announce it will open its headquarters in London on July 1, following its recent success in raising £3.4 million from UK institutional investors ahead of a planned arrival on the Alternative Investment Market.

The company, which has a strong portfolio of proven gas, oil and coal assets in the Philippines, has also established an operating office in Manila.

The board is chaired by Alan Henderson, whose extensive experience in the oil and gas sector includes a spell as Chairman of Ranger Oil UK. Chief Executive David Robinson has worked internationally in the industry for the past 18 years, and previously headed Odyssey Petroleum Corporation, Tracer Petroleum Corporation, and Aurado Energy Inc.

The newly-established UK company combines the Philippine assets formerly held by Forum Energy Corporation of Canada and AIM-quoted Sterling Energy plc. Sterling Energy's Chief Executive, Harry Wilson, and Finance Director, Graeme Thomson, have joined the board of Forum Energy plc as non-executive directors. Sterling also holds a 23% stake.

Chief Executive David Robinson said: "Our successful fundraising enables us to embark on an aggressive programme to maximise the value of our assets in the Philippines. Our solid portfolio of proven gas, oil and coal reserves, alongside highly promising exploration prospects, positions us well to help meet the Philippines' growing energy requirements."

Forum's Philippine assets include the offshore Reed Bank licence containing the significant Sampaguita gas discovery, as well as a 67% interest in the Libertad onshore gas find on the island of Cebu and two coal operating contracts with proven and probable reserves of 4.9 million tonnes. The company also has an early oil discovery at Maya, and promising oil targets around Cebu, such as Central Tanon and Jibitnil Island.

First gas production is expected later this year from the Libertad field, to supply a gas-to-power project. Production of high-quality steam coal from Forum's coal properties is also due during the first half of next year.

Forum Energy, represented by stockbrokers Noble & Company Ltd, raised £3.4 million in an institutional placing at 100p per share. The placing gives new investors around a 20% holding in the company, and values it at over £17 million at the pre-IPO stage.

For further information, contact:
Andrew Mullins, Forum Energy plc: +44 (0) 20 7976 1222
Adam Westcott, Noble & Company Ltd: +44 (0) 131 225 9677
Ian Foster, First City Financial Public Relations: +44 (0) 20 7436 7486 or +44 (0) 7739 185 050