Forest Gate Acquires Oil and Mineral Interests in Southern Cameroons, Africa
Calgary, Alberta--(Newsfile Corp. - January 30, 2013) - Forest Gate Energy (TSXV: FGE) reports that it has acquired a 20 percent contingent interest in the future petroleum and mineral licenses of Southern Cameroons, Africa. The region is known to host on-shore and off-shore petroleum reserves as well as gold, diamonds, uranium, iron, bauxite and manganese.
The agreement is with Kilimanjaro Capital Ltd, a private Calgary-based company that acquires natural resource interests in emerging African nations. In consideration of the future contingency interests and subject to the lifting of the current cease trade order over the securities of the company, Forest Gate will issue three million of its shares to Kilimanjaro Capital.
Kilimanjaro Capital is the signatory of an Assignment Agreement with the recognized Government of Southern Cameroons, which provides exclusive exploration and exploitation rights and covers an area of approximately 43,000 square kilometres, including the Northern and Southern provinces, the Bakassi Peninsula, and future off-shore rights.
According to the Government of Southern Cameroons, oil exploration in the disputed Bakassi region could commence in a matter of months along with mineral exploration in other parts of the country.
The Southern Cameroons is known to host significant petroleum reserves. Most of Cameroon’s known commercial oil reserves are located in the off-shore Rio Del Rey basin. According to a Wood Mackenzie report of October 2011, Cameroon hosts liquid reserves of 0.21 billion barrels and has liquid production of 53,000 barrels per day.
Glencore Exploration Cameroon Ltd., Bowleven plc, Kosmos Energy and Sinopec are believed to be exploring and or producing in or near the area.
Southern Cameroons, which is seeking to secede from the Republic of Cameroon, is the former United Nations Trust Territory of the British Southern Cameroons. The Government of the Southern Cameroons is a full member of the Organization of Emerging African States (OEAS) in Washington, DC, Unrepresented Nations and Peoples Organization (UNPO) in The Hague and claims effective control of the oil-rich Bakassi Peninsula.
In 1961, Southern Cameroons attained independence and immediately united with the French Cameroons in a federal union. In 1972, Southern Cameroons was forcibly annexed. In 2009, an offer by the African Union to mediate was rejected by the Republic of Cameroon. The current leader of the Southern Cameroons Government is Ebenezer Derek Mbongo Akwanga Jr., a former political prisoner who is backed by the UN Human Rights Council and the human rights, anti-torture organization, UK NGO Redress.
“This deal with Kilimanjaro Capital is our first foray into the vast mineral potential that is Africa,” said Michael C. Judson, Forest Gate’s President and CEO. “We are going to pursue additional opportunities in oil and mining in Africa.”
“Kilimanjaro Capital has an impressive array of supporters and is very well connected in Africa,” said Judson. “This is one of the reasons I joined their board.”
The agreement is subject to regulatory approvals.
About Forest Gate Energy:
Forest Gate Energy Inc. is a publicly listed natural resource company trading on the TSX Venture Exchange under the symbol FGE.
Certain statements regarding Forest Gate, including management’s assessments of future plans and operations and Forest Gate’s anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate’s control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate’s various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.