Forum, the AIM-listed oil, gas and coal exploration and production company focused in the Philippines, today announces interim results for the six months to 30 June 2007.

HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

• Confirmed proven GIP at Sampaguita, GSEC101, of 3.4TCF with upside to 20TCF.
• Initiated the process of conversion of GSEC101 to a service contract.
• Farmed out a 30% interest in GSEC101 to Monte Oro Resources & Energy, Inc., securing past costs and Filipino Participation Incentive Allowance (FPIA).
• First production from Galoc on track to commence early 2008.
• Farm out of NW Palawan assets in progress.
• Refocused the Company to take full advantage of GSEC101 opportunity.

FINANCIAL HIGHLIGHTS

• Revenues of US$0.37 million for the interim period ended 30 June 2007 (US$0.13 million – 30 June 2006).
• Shareholders’ equity of US$50.64 million as of 30 June 2007 (US$54.50 million – 30 June 2006).
• Cash resources anticipated to be adequate for the foreseeable future.
• Loss before minority interest of US$1.74 million for the interim period ended 30 June 2007 (US$0.34 million – 30 June 2006).

For further information please contact:

Russell Harvey, Chief Executive, Forum Energy Plc
+44 (0)1932 445 344

Nick Naylor, Noble & Company Ltd
+44 (0)20 7763 2200

Jamie Boyd, Noble & Company Ltd
+44 (0)20 7763 2200

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

CHAIRMAN’S & CHIEF EXECUTIVE’S STATEMENT:

Dear Shareholder

Forum continues to make progress, working its assets and conserving its cash with the objective of realising shareholder value through its prime asset, the GSEC101 block containing the Sampaguita gas discovery.

With production from the Galoc field and judicious farm-outs the Company is positioned to be able to fund its work programs through 2008 and beyond and looks to progress positively in the coming months. It remains open to, and is actively seeking, additional business opportunities to provide value but sees these as being consummated to maximum shareholder benefit once the service contract on GSEC101 is awarded. With the recent farm out to Monte Oro Resources & Energy, Inc. we are optimistic that a service contract award will be forthcoming in the near future.

Financial report

Forum recorded a loss of US$1.74 million for the interim period ended 30 June 2007 (US$0.34 million for interim period ended 30 June 2006). After deduction of minority interest, the loss attributable to shareholders of US$1.61 million compares to a loss of US$0.30 million for the equivalent period last year and US$3.26 million for the full year 2006.

Revenues for the period were US$0.37 million (US$0.13 million for interim period ended 30 June 2006) attributable to oil production from the Basic Petroleum & Minerals Inc. (BPMI) assets acquired in April 2006. A gross loss of US$0.16 million compares to a marginal profit in the first six months of 2006 and primarily reflects a higher rate of depletion of production assets. Administrative expenses of US$0.99 million were broadly in line with the equivalent period last year but proportionately lower than full year 2006, reflecting efforts by the new management to reduce spend rates and conserve cash resources. The increased loss from operations of US$1.57 million, compared to first half 2006 loss of US$0.93 million, included non-cash share-based payments of US$0.42 million reflecting an emphasis on incentive-driven rewards for staff. The full year 2006 loss from operations includes US$0.92 million of impairment charges with no similar charges appearing in the first half of 2007.

Financial income of US$0.08 million was down from US$0.59 million for the comparative period of 2006, reflecting the gradual utilisation of cash raised in 2005 whilst financial expense of US$0.18 million principally comprised exchange losses on non-current liabilities.

Cash balances totalled US$3.74 million at 30 June and, allied to reduced rates of ongoing expenditure, left the Company with sufficient resources to maintain its programmes whilst seeking to advance the value of its key assets.

GSEC101

GSEC101 is an area with tremendous potential, both exploration and appraisal. The Company is progressing the conversion of the license to a service contract, which is at the Company’s option, and has introduced a local partner through the farm-out of a 30% participating equity interest. This farm-out secures the Filipino Participation Incentive Allowance (FPIA) which equates to 7.5% of gross revenues as well as past costs. Importantly, this farm-out secures local involvement which is considered essential to the success of the project. Following service contract award Forum will be seeking a farm in partner on behalf of both participants to expedite the work program.

NW Palawan

This is a prolific oil-producing area in which Forum has a number of interests following the purchase of the assets of BPMI. The Nido / Matinloc fields continue to provide cash flow, while the Galoc field in which the Company has a 2.28% carried interest is scheduled for first production in early 2008. A farm-out has been agreed, subject to necessary approvals, on the Octon oil accumulation leaving the Company with a 1.67% carried interest and discussions are ongoing on farm out of the proven West Linepacan oil accumulation. The Company has determined, following technical review, that this area will be used to generate the cash flow necessary to sustain it, and to take advantage of the greater prize of GSEC101.

SC40

The Company has completed its review of the offshore portion of the licence and identified a number of prospects. The offshore area will be the subject of a farm-out campaign while the onshore area is under review following the re-entry of the Maya well with inconclusive results. The Libertad gas development remains in abeyance pending clarification of commercial terms.

Coal Contracts

The prime activity in the coal contracts has been the extension of exploration activities following some unexpected core results, which required confirmation of the geological model prior to further investment in order to secure the necessary returns. This has now been completed to satisfaction. However, with the positive results on GSEC101 and the determination to conserve capital to take advantage of a variable timeline in the award of the service contract, the Company is in the process of marketing the proven coal assets to more quickly capitalise on the resource and is in discussion with a number of interested parties.

In conclusion your Company remains confident that, given its prudent approach and strong relationships within the Philippines, the business will prosper to the benefit of shareholders for the remainder of 2007 and beyond.

Yours sincerely

Alan Henderson, Chairman
Russell Harvey, Chief Executive
18 June 2007

Independent review report to Forum Energy Plc

Introduction

We have been instructed by the Company to review the financial information for the six months ended 30 June 2007. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market, and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of, and for the purpose of, our terms of engagement, or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Directors’ responsibilities

The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market, which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the Company’s annual accounts, having regard to the accounting standards applicable to such annual accounts.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied, unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Standards on Auditing and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2007.

BDO STOY HAYWARD LLP
Chartered Accountants
8 Baker Street
London W1U 3LL

26 September 2007

Financial Statements & Notes

Please see the Interim Results for the six months to 30 June 2007 document for financial statements and notes that go with this report.