FEC RESOURCES INC. (OTCBB: FECOF) ("FEC" or "the company")reports that Forum Energy Plc ("Forum"), the UK energy group of which FEC Resources holds a 35% equity interest, has today issued the following announcement
"3D SEISMIC PROGRAMME RESULTS AT SAMPAGUITA GAS DISCOVERY INDICATES WORLD CLASS GAS ASSET
Forum Energy (AIM: FEP), the AIM listed oil, gas, and coal exploration and production company focused on the Philippines, is pleased to announce that the interpretation of the 3D seismic programme at the Sampaguita gas discovery indicates a world class gas accumulation with potential reserves of up to 20 TCF (“Trillion Cubic Feet”) Forum has 100% of the equity in the licence in which the Sampaguita offshore gas discovery is situated. The block is located off the North West coast of Palawan Island in the Philippines.
Results from the 3D seismic programme and its interpretation performed by independent consultants, Count Geophysics Limited, confirmed a minimum of 3.4 TCF proven gas in place from sands tested in the 3 wells drilled to-date and the extension of the structure to a possible closure of 290 sq. km giving an upside reserves in these sands alone of 10 TCF.
Additional untested sands, which are known to contain gas, could double this figure. The block also contains 8 additional leads which require further work that has the potential to add a further 20 TCF in aggregate.
Forum is in the process of converting the licence to a service contract and plans to drill an appraisal well as soon as possible."
Sampaguita lies 250 kilometres southwest 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.
“We are delighted with the news from FEP confirming an asset of enormous potential and through our significant 35% shareholding, it is anticipated FEC shareholders should benefit greatly. It is understood an appraisal is to be sought at the earliest opportunity to bring the gas field to commerciality, which given the potential reserve size and proximity to the Asian markets is an ideal candidate for an LNG facility.” commented Larry W. Youell, President & CEO.
To learn more about the Oil, Gas and Coal assets of Forum Energy Plc visit their website at www.forumenergyplc.com
FEC Resources Inc, holds a diverse portfolio of Oil, Gas, Coal, Gold and Iron Ore assets located in the Philippines through its shareholdings in Forum Energy Plc, Lascogon Mining Corporation and Metalore Mining Corporation. For further information email firstname.lastname@example.org
On behalf of the Board of,
FEC Resources, Inc.
“Larry W. Youell”
Larry W. Youell
President and 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