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Forum Energy Plc Closes Successful 11 million Pounds Sterling Placing Ahead of Arrival to AIM Tuesday August 2, 11:44 am ET
CALGARY, Alberta, Aug. 2 /PRNewswire-FirstCall/ -- FEC RESOURCES INC. (OTC Bulletin Board: FECOF, Frankfurt/Munich: FE8) reports that Forum Energy Plc ("Forum"), the UK energy group with gas, oil and coal assets in the Philippines, of which FEC Resources is a major shareholder has announced the completion of a second-round fund raising which saw key institutions invest 11.0 million pounds (US$19.35m) for 36% of the company at 1.12 pounds (US$1.97) per share. An earlier placing in May raised approximately 3.4 million pounds (US$5.98 million) at 1.00 pounds (US$1.76) per share. Forum's assets include the highly promising Sampaguita gas discovery in the Reed Bank offshore license area, the SC 40 (Cebu) license with known onshore and offshore gas and oil discoveries, and two coal operating contracts on Cebu Island. The company has estimated potential reserves from three discoveries totaling some 2,330 BCF of gas and proven and probable coal reserves of 4.9 million tones.
The company expects to start generating gas and coal production revenues during the first half of next year, and operates in a country where energy development is a government priority.
Approximately 27.2 million shares will be admitted to AIM, at 1.12 pounds (US$1.97) per share, valuing the company at 30 million pounds (US$52.78 million). Following the placement FEC Resources, Inc. will be the largest single shareholder with a 37.6% stake in the business valued at approximately US$20m.
Forum Energy Plc shares will commence trading on the AIM market on August 2nd.
"We are delighted that Forum Energy Plc has successfully closed this substantial round of fund-raising. FEC Resources shareholders will benefit greatly from the accelerated development of the Philippine Oil, Gas and Coal assets of Forum Energy Plc through our significant shareholding in the business," commented Larry W. Youell, President & CEO.
To learn more about FEC Resources, Inc visit www.FECResources.com. To learn more about the Oil, Gas and Coal assets of Forum Energy Plc visit their website at www.forumenergyPLC.com
For General Enquiries email: info@FECResources.com
On behalf of the Board of, FEC Resources, Inc. "Larry W. Youell" President & CEO
This release contains "forward looking statements" as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Management is currently reviewing many options and there is no assurance that they will not make decisions other than those now contemplated. The Company is subject to political risks and operational risks identified in documents filed with the Securities and Exchange Commission, including changing and depressed oil prices, unsuccessful drilling results, change of government and political unrest in its main area of operations For more information please contact Larry Youell at (403) 290-1676 e-mail info@FECResources.com or visit the FEC Resources website at www.FECResources.com
-------------------------------------------------------------------------------- Source: FEC Resources Inc.
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