CALGARY, ALBERTA--(Marketwire - Feb 4, 2013) - Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent" or the "Company") is pleased to provide the following corporate update.
Forent has completed the previously announced sale of its Mervin heavy oil property to Husky Oil Operations Limited ("Husky") for $5.56 million. The Mervin disposition has an effective date of December 31, 2012. The Company intends to use the proceeds to fund working capital and future capital budget requirements.
Management of Forent is also pleased to announce that it has scheduled closing of its previously announced common share financing for February 14, 2013. The offering is fully subscribed in the amount of $1.5 million of common shares at a price of $0.05 per share. Following completion of the financing and the sale of the Mervin assets, and the satisfaction of outstanding payables, the Company will have a net working capital position of approximately $6 million.
Further to the Company''s January 30, 2013 press release, Forent looks forward to the official start date of its new President and Chief Executive Officer on February 22, 2013. W. Brett Wilson, Chairman of the Board of Directors of Forent, confirms, "Forent as an entity has a strong balance sheet and a focused commitment to growth going-forward. With a very technically capable President and CEO in Richard Wade, Forent will have the ability to exploit our significant Montgomery and Alton assets and pursue strategic acquisitions."
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements such as the estimates of reserves, the references to Forent''s exploration program and drilling program and capital expenditures relating to, and timing of, such programs are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond Forent''s control, and no assurance can be given that the programs will be completed on time, on budget or at all. In addition, there are numerous uncertainties inherent in estimating reserves, including many factors beyond Forent''s control, and no assurance can be given that the indicated level of reserves or the recovery thereof will be realized. Forent undertakes no obligation to update forward-looking information if circumstances or management''s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in Forent''s filings with Canadian securities regulators, which filings are available at www.sedar.com.