Forum (AIM symbol: FEP), the Philippine focussed independent oil, gas and coal exploration and production company, announces that at the annual general meeting of the Company, held today at 11a.m., all the resolutions were passed.

The Board notes press speculation in The Manilla Bulletin Online today raising questions about Forum’s legal position in relation to GSEC101. The Board has had confirmation from its own legal advisers that, in their opinion, Forum has full legal title to GSEC101. This has been confirmed in discussions with the Philippines Department of Energy (“DOE”). As a consequence, the Board believes that the speculation is wholly inaccurate.

The Company continues to actively progress discussions to convert the GSEC101 licence to a Service Contract and to introduce a partner. The timing on these developments remains subject to approval from the Philippines government.

GSEC101 (Reed Bank)

In July 2006, the Company completed the interpretation of the 3D seismic survey shot in 2005 across the Sampaguita gas discovery in licence area GSEC101 to the West of Palawan Island. Forum currently holds 100% of this under-explored acreage, which covers 10,630 square kilometres and contains at least eight additional undrilled prospects and leads.

The seismic interpretation, coupled with the data from the wells drilled in the 1970s and 1980s, increased the expected reserves to 3.4 TCF gas-in-place (previously independently assessed by PGS Reservoir Ltd. at 2.7 TCF gas-in-place). Additionally the evaluation indicated an upside of up to 20 TCF. Additional leads were also identified, further adding to the prospectivity of the area.

As a consequence of the positive results Forum commenced the process of converting the licence to a Service Contract in a form as pre-agreed and appended to the current Geophysical Survey & Exploration (“GSEC”) licence, allowing the Company to move to the next stage of evaluation through the drilling of an appraisal well.

While the Company is hopeful of award of the Service Contract shortly, with the political sensitivities of the area, the Company needs to be in a position to manage the eventual timeframe.

The potential size and scale of the project open up a number of development options, including both gas export and LNG. This will ultimately be dependant upon the reserves finally defined as a result of future drilling but it is anticipated that both new wells and further seismic will be necessary.

Sampaguita lies 250 kilometres south west of the world-class Malampaya Gas Field, where operator Shell has installed extensive production facilities and pipeline infrastructure that supplies gas to three Philippine power plants.

For further information please contact:

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

Nick Naylor, Noble & Company Ltd
+44 (0)207 763 2200

Charles Vivian, Pelham Public Relations
+44 (0)20 7743 6672
+44 (0)7977 297 903

James Henderson, Pelham Public Relations
+44 (0)20 7743 6673
+44 (0)7774 444 163