FEC RESOURCES INC. (“FEC” or the “Company”) (OTCBB: FECOF) wishes to advise shareholders that it has noted the following announcement made yesterday by Forum Energy PLC. (FEP) in which FEC holds a 25.84% equity interest.
Forum Energy Plc
(“Forum Energy” or the “Company”)
Award of Service Contract
The board of Forum Energy, the UK based gas & oil E&P company with a portfolio of projects in the Philippines, is delighted to announce that the Government of the Philippines, acting through the Philippines Department of Energy, has today awarded the Service Contract relating to the GSEC 101 licence to Forum (GSEC 101) Limited, a wholly owned subsidiary of the Company.
The GSEC101 licence in which the Company has a 70% interest, is the Company's principal asset, and is situated offshore west of Palawan Island in the South China Sea. In 2006, results from a 248 square kilometre 3D seismic survey over the licence area confirmed a minimum of 3.4 TCF proven gas in place with significant upside potential.
Full details relating to the contract work programme will be announced shortly.
Walter Brown, Chief Executive Officer, commented:
"We are very pleased to have finally secured the Service Contract over the GSEC 101 area in what is a company-changing development for Forum Energy. We intend to push forward with the appraisal of this gas field to commerciality and ultimately to the delivery of material value to our shareholders. Given the potential size of the resource and proximity to the Asian markets, we believe this project is an ideal candidate for an LNG facility."
FEC Resources Inc. holds a diverse portfolio of oil, gas, coal, and gold assets located in the Philippines through its shareholdings in Forum Energy Plc and Lascogon Mining Corporation.
On behalf of the Board of,
FEC Resources, Inc.
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 Riaz Sumar at (403) 290-1676 e-mail info@FECResources.com or visit the FEC Resources website at www.FECResources.com