Forum Energy (AIM: FEP), the AIM-listed oil, gas and coal exploration and production company focused in the Philippines, today announces the termination, by mutual consent, of the contract with ESG Dubai Partnership (“ESG”) for the provision of technical management services. These services will now be provided in-house by the Company. Ian Baron, Non-Executive Director of the Company, is also a vice president of ESG.

With regard to the settlement of outstanding amounts due by the Company to ESG, Forum has agreed to issue 75,000 fully paid up ordinary shares of 10p each in the capital of the Company, representing 0.26% of the Company’s issued share capital, to ESG at 77p per share. This price represents the average closing share price of the Company’s shares for the 19 business days in December 2006. Application has been made for these shares to be admitted for trading on AIM and it is expected that the shares will be admitted at 8.00 am on 9 February 2007.

For further information please contact:

Russell Harvey, Forum Energy Plc:
+44 (0) 19 3244 5344

Adam Westcott, Noble & Company Ltd
+44 (0) 20 7763 2200

James Henderson, Pelham Public Relations:
+44 (0) 20 7743 6673
+44 (0) 77 7444 4163

Charles Vivian, Pelham Public Relations:
+44 (0) 20 7743 6672
+44 (0) 79 7729 7903