Oil Discovery - Ferrybank
Forest Gate entered into a second joint venture agreement with Emerald Bay Energy Inc., Calgary, to acquire a 41.3% working interest (20.65% after payout) in an Alberta oil discovery well. The well has now stabilized at a production rate of approximately 30 barrels of oil per day.
Revenue is being generated for Forest Gate from ongoing production.
It is currently the only oil producing well in the area.
The Ferrybank property is located approximately 40 miles South of Edmonton, Alberta.
Natural Gas Production - Nevis
Forest Gate has entered into a joint venture agreement with Emerald Bay Energy Inc., Calgary, to acquire a 10% working interest (5% after payout) in four natural gas producing wells.
Four wells are producing natural gas from coalbed methane at approximately 450 thousand cubic feet per day, and generating revenue for the company.
These well locations are directly offsetting highly productive existing coalbed methane producers.
The Nevis property is located in Twp 39, Rge 22 W4M, approximately 22 miles East of Red Deer, Alberta.
Exploration Well - Kelsey
Forest entered into a third joint venture agreement with Emerald Bay Energy Inc., Calgary, to acquire a 38% working interest before payout in an Alberta exploration well.
Currently producing 194 thousand cubic feet of gas per day, but is expected to ramp up to 250 - 300 thousand cubic feet of gas per day. Revenue is now being generated for Forest Gate from ongoing production. The Kelsey exploration well is located in Twp 44, Rge 18 W4M, approximately 65 miles SE of Edmonton, Alberta.
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