Forest Gate Withdraws Offer To Acquire Oil and Gas Assets

    




 SYMBOL & EXCHANGE: FGE-V 

 CALGARY, Dec. 30, 2011 /CNW Telbec/ - Forest Gate Energy Inc.  reports that its energy group has withdrawn its offer to acquire  oil and gas assets from Sandbox Energy Corp. of Calgary. 

 The decision follows due diligence. Forest Gate says it believes it can  pursue a new deal with Sandbox, but likely on the basis of revised  terms. 

 "The original deal (see news release, Dec.13, 2011) was complicated,"  said Michael Judson, President and CEO of Forest Gate. "I think we can  collectively come up with something that is much simpler." 

 "We like Chris Tesarski and the Sandbox assets and welcome a revised  proposal," said Judson. 

 In the meantime, the company says it will continue to pursue financing  to enable its mineral exploration group to advance the company's 100  percent-owned iron ore projects located in Abitibi, Quebec. 

 About Forest Gate Energy Forest Gate Energy Inc. is a publicly listed oil and gas exploration and  production, and non-energy resource company trading on the TSX Venture  Exchange under the symbol FGE. The Company is seeking to increase  shareholder value through participation and development of energy and  other resources in Canada and internationally. 

 FORWARD-LOOKING STATEMENTS 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. 

FOREST GATE ENERGY INC.


CONTACT:  MICHAEL JUDSON PRESIDENT & [e-mail] 


    

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