Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today announces its audited results for the year ended 31 December 2014.

FINANCIAL Highlights

• Revenues of US$6.8 million in 2014 (2013: US$4.4 million)    
• Gross Profit of US$2.9 million in 2014 (2013: US$1.5 million)
• Administrative expense reduced to US$1.6 million in 2014 (2013: total administrative expense of US$2.5 million)
• Net Profit attributable to owners of the parent of  US$0.2 million (2013: loss US$2.9 million)
• Working capital of US$1 million at year end (2013: US$0.3 million)
• Philex Petroleum loan facility due for repayment 24 November 2016 currently US$15.5 million due (2013: US$15.2 million)
• Available funds of US$2.5 million under the Philex loan facility as at 31 December 2014 (2013: US$2.8 million)

OPERATIONAL Highlights

• Unable to commence SC72 drilling programme due to the on-going maritime dispute between the Philippine and Chinese governments. An extension was granted to August 2016 to complete the second sub-phase obligations of drilling wells on SC72. Commencement of offshore exploration activities remains subject to securing the necessary approvals from the DOE and other relevant Philippine Government agencies.
• Galoc Oil field production increased to an average of 8,000 barrels of oil per day (bopd) in 2014, compared to an average of 4,720 bopd in 2013, this follows the completion of Phase II of the development in November 2013, which involved the drilling of two additional wells.  The average oil price achieved in 2014 was $107 per barrel of oil (2013 - $110). Average prices per barrel declined sharply in the last quarter of 2014 and has continued to decline in 2015 up to the date of these results.
• The operator of the Galoc oil field, The Galoc Production Company (GPC), is reviewing plans for the Phase III development of the Galoc oil field, which potentially may involve the drilling of an additional production well and also an exploration well in the Galoc Mid or Galoc North prospects.
• With regards to SC40, we have identified potential prospective onshore areas. Geological and geophysical activities on these areas are on-going along with continued discussions with potential farm-in partners.

Robin Nicholson, Chairman, commented: "Whilst it is disappointing that we have been unable, as a result of matters beyond our control, to carry out drilling under the second sub-phase of the Service Contract 72 contract, we remain committed to pursuing the project and continue to have the support of the Philippine Government as demonstrated by the extension awarded in respect of the second sub-phase.  We remain financially committed to ensure the Company ultimately achieves its objectives at such time as government approval to proceed with work at SC72 is granted. Our producing Galoc field performed well in 2014 and we increased gross profit to US$2.9 million, but are expecting lower levels of gross profit in 2015, due to lower oil prices and lower levels of production at the Galoc field. We thank our shareholders for their ongoing support and will continue to update the market as developments occur".

The Company expects to announce, in due course, when it has posted its Annual Report and Accounts and AGM Notice.     

For further information please contact:

Forum Energy Plc
Andrew Mullins, Executive Director                          Tel: +44 (0) 208 616 7297

Execution Noble & Company Limited
Harry Stockdale                                                     Tel: +44 (0) 20 7456 9191 John Riddell