Coalbed Methane (CBM) Corral Message Board

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Gold/Mining/Energy : Coalbed Methane (CBM) Corral

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From: johnlw	11/13/2007 11:21:15 AM
	of 365

Forest Gate to buy interest in Emerald Bay CBM project 2007-11-13 09:16 MT - News Release Also News Release (C-EBY) Emerald Bay Energy Inc Mr. Michael Judson of Forest Gate reports FOREST GATE TO DRILL FOUR COALBED METHANE WELLS Forest Gate Resources Inc. has entered into a joint venture agreement with Emerald Bay Energy Inc. to acquire a working interest in an Alberta property, which potentially hosts natural gas in coal-bed methane. Leases have been acquired by the consortium for the drilling of four coal-bed methane test wells in the Nevis area, located in central Alberta. All four wells are scheduled to be drilled by the end of the fourth quarter of 2007. Forest Gate's commitment to the four-well drilling program is fully funded. Four Nevis wells will be drilled in the Horseshoe Canyon coal-bed methane fairway and completed consecutively to a total depth of 425 metres. These proposed locations are directly offsetting highly productive existing coal-bed methane producers. Offset wells have had initial daily production rates between 125,000 and 400,000 cubic feet of gas per day. The Horseshoe Canyon has the largest deposits of coal-bed methane in Canada. Estimates for the amount of gas from coal-bed methane that can be recovered from this area in its entirety are between six trillion and 15 trillion cubic feet. PARTNERS -- NEVIS AREA LICENCE Partner Before payout After payout Emerald Bay Energy 45% 28% Just Freehold Energy (JFEC) 44% 22% Forest Gate Resources 10% 5% The Nevis property is located in Twp 39, Rge 22 W4M, approximately 22 miles east of Red Deer, Alta. The project operator is Emerald Bay Energy. Just Freehold Energy is another partner in the consortium. The private Canadian energy company is focused on finding and developing oil and natural gas rights owned by individual freehold owners in a just and economically efficient manner. JFEC uses leases drafted by the Freehold Owners Association, as opposed to energy industry lawyers, which are designed to fairly balance the rights of the freeholder with those of the energy company. One of the main advantages of using this type of lease for Forest Gate and its partners is that royalties are capped at 28 per cent and are therefore not affected by the rising royalties in Alberta. "We are excited to be working with Emerald Bay," said Michael Judson, president and chief executive officer of Forest Gate. "We believe they understand this geological environment very well and success here would create cash flow and could lead to other interesting new projects." We seek Safe Harbor.

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