Forum is pleased to announce that its wholly owned subsidiary, Forum (GSEC101) Limited, has entered into Heads of Agreement with Monte Oro Resources & Energy, Inc. (“Monte Oro”), a private Philippine company focused in Mining, Oil & Gas and Infrastructure investments in the Philippines.
Under the terms of the agreement, Monte Oro will acquire a 30% participating interest in GSEC101. Monte Oro will pay Forum Energy plc the amount of US$1,500,000
of past costs to the date of the agreement plus its pro-rata share of costs incurred to the point of payment. Payment will take place the earlier of six months following award of the Service Contract or completion of any future farm out transaction.
The participation of Monte Oro in the Service Contract application of Forum, now pending with the Department of Energy (“DOE”), will entitle the joint venture to the Filipino Participation Incentive Allowance (“FPIA”) which equates to 7.5% of gross proceeds from any future production. Monte Oro will assist in obtaining all regulatory approvals for the conversion of GSEC 101 into a Service Contract.
The assignment of the interest is subject to the approval of the Department of Energy of the Republic of the Philippines.
Statement from Russell Harvey, Chief Executive:
“We are very pleased to have signed this Agreement with Monte Oro which we are confident will assist us in a timely conversion of the Service Contract. This partner brings a wealth of local experience which will assist in developing Forum’s business while providing welcome Philippine participation in a major local resource. The new Joint Venture will also qualify for the Filipino Participation Incentive Allowance which enhances the attractiveness of any future development. I am looking forward to working closely with our new partner to expedite both the Service Contract award and activity on the block going-forward.”
For further information please contact:
Russell Harvey, Forum Energy Plc
+44 (0)1932 445 344
Charles Vivian, Pelham Public Relations
+44 (0)20 7743 6672
+44 (0)7977 297 903
Evgeniy Chuikov, Pelham Public Relations
+44 (0)20 7743 6672
+44 (0)7894 608 606
Notes to Editors
About Monte Oro Resources & Energy, Inc.
Monte Oro Resources & Energy, Inc. (“Monte Oro”) is a privately held Philippine company formed in 2005 specifically to invest in Mining, Oil & Gas and Infrastructure investments in the Philippines. The Company is chaired by Dr. Walter W. Brown who is also Chairman of Philex Mining Corporation, which is listed on the Philippine Stock Exchange under “PX”.
The board of Monte Oro also consists of a number of eminent Filipino businessmen including Wilson Sy, the former Chairman of the Philippine Stock Exchange.
The company currently holds interests in both Coal and Oil & Gas licences in the Philippines.