Forest Gate reports that they will be participating in follow-up meetings with their Celtic Sea partners to continue discussing the development program for Hook Head and to determine drilling requirements.
As reported in a news release dated, October 11, 2007, appraisal well 50/11-3 on the Hook Head field contains a significant oil accumulation in a high quality reservoir. The hydrocarbon type recovered is confirmed as good-quality 30 degree API oil with associated gas. During preliminary evaluation of Hook Head, hydrocarbons were encountered over a 484 ft. gross interval in the main target zone with 75 ft. net hydrocarbon bearing section.
The Hook Head structure is split evenly into three distinct fault blocks, the Northern, Southern and Central panels. Wells 50/11-1 and 50/11-2, drilled by Marathon Oil and Gas in the 1970s, and appraisal well 50/11-3, drilled by Forest Gate and Celtic Sea partners, targeted the central fault block of Hook Head. Future wells drilled on the Northern and Southern panels of Hook Head would seek to confirm the presence of hydrocarbons and the continuity of reservoir characteristics.
Furthermore, the success of Hook Head would justify economic development of the additional Celtic Sea fields. Forest Gate has a 7.5% interest in two licenses in the Celtic Sea, Ireland. These licenses include, in addition to the Hook Head discovery, three discoveries which have flowed oil and gas. For example, Dunmore and Helvick, which are both within 40 km of Hook Head, have both flowed oil, while Ardmore has flowed gas. In addition, there are two other oil prospects, Blackrock and Rushane. Blackrock has the potential to be an even larger field than Hook Head.
Given the positive reappraisal of the Hook Head field, these additional oil & gas discoveries could prove economical and could be tied into the infrastructure that will be put into place for Hook Head production.
Forest Gate and the consortium were previously granted a licensing option over acreage surrounding Hook Head. The operator, Providence Resources, has carried out regional mapping over the area and has indicated a number of significant leads and prospects which could be similar to the Hook Head structure.
Forest Gate's additional properties include two Alberta gas properties, Nevis and Ferrybank and its Saskatchewan diamond properties. Forest Gate continues to exploit its 100% owned Saskatchewan diamond properties. Although there is no current program planned for these diamond properties, the company considers them valuable.
"It has been quite a year for Forest Gate, evolving into an international oil & gas company with a major offshore oil discovery, and nearing production with our Alberta gas properties," said Michael Judson, President and CEO of Forest Gate. "The momentum is building to make 2008 an even more eventful year for the company and its shareholders."
Partners in the Hook Head well are:
Providence Resources Plc (Operator): 40%
Challenger Minerals (Celtic Sea) Limited: 15%
Dyas BV: 15%
Forest Gate Resources Inc.: 15%
Atlantic Petroleum (Ireland) Limited: 10%
Sosina Exploration Limited:** 5%
*This includes a provision for comprehensive wireline logging and testing.
**Farm in subject to Ministerial Consent