Forest Gate Corporate Update: Oil & gas deal due diligence still in progress; Sourcing a rig to drill Pershing

MONTREAL, Feb. 15 /CNW/ -- 
Symbol & exchange: FGE-V


MONTREAL, Feb. 15 /CNW Telbec/ - Forest Gate Energy reports that it is
 continuing its due diligence on the acquisition of oil and gas assets
 located in south-western Saskatchewan and is currently busy sourcing a
 rig to drill its Pershing gold property in Quebec. The company says it
 believes that the oil and gas acquisition could close this week.


On the mineral exploration side, Forest Gate Energy will be undertaking
 an exploratory drill campaign before spring break-up and is in the
 process of sourcing a rig to drill its Pershing gold property in
 Quebec. The company has approached several diamond drill rig suppliers
 for a quote to undertake the drilling program on its 100 percent owned
 Pershing gold property located near Val D'Or, Quebec. "There is a lot
 of exploration going on in Quebec and so it is a tight market for rigs
 and personnel. We are presently speaking with a couple companies who
 have indicated that they may be able to slot us in between contracts,"
 said Edward Procyshyn, Manager, Mineral Exploration.


With regards to the company's oil business, Forest Gate is deep into the
 due diligence process on its acquisition. As previously announced (FGE
 news release, December 23, 2010), upon closing of the transaction,
 Forest Gate will own a non-operated 20 percent interest in oil and gas
 licenses encompassing 19,848 acres in south-western Saskatchewan in
 areas known as Rangeview, Divide and Katherine. The remaining 80
 percent interest is owned and operated by Trafina Energy Ltd., a
 publicly-traded oil and gas company based in Calgary.


Subsequent to Forest Gate's December 23 news release, Trafina Energy
 reported (see Trafina news release, Jan. 10, 2011) it had placed its
 first horizontal well in the Upper Shaunavon formation into production.
 Trafina reported that the horizontal well is producing at a gross oil
 flow rate of 60 barrels per day.


Prior to the completion of the horizontal hole in the Upper Shaunavon
 formation, the Range and Divide properties net production to Forest
 Gate would have been 18 barrels oil and 10 barrels of oil equivalent in
 gas. The first horizontal well just completed by Trafina in the Upper
 Shaunavon will bring net production to Forest Gate of 30 barrels of oil
 and 10 barrels of oil equivalent in gas.


Trafina reports that it intends to drill at least two additional wells
 in the Upper Shaunavon and at least two wells in the Madison formation
 at Rangeview and Divide in 2011.  


"We have been working very hard on this deal and for good reason.  It
 doubles our oil production in the immediate term and has the low-risk,
 development potential that could make Forest Gate cash-flow positive by
 the end of 2011 or sooner," said Michael Judson, President and Chief
 Executive Officer. "It is a significant building block for the
 company."


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 Corporation is seeking to increase
 shareholder value through participation and development of energy and
 other resources in Canada and internationally.


FORWARD-LOOKING STATEMENTS


BOEs may be misleading, particularly if used in isolation. A BOE
 conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency
 conversion method primarily applicable at the burner tip and does not
 represent a value equivalency at the wellhead. In addition, the
 estimated values disclosed in this release do not represent fair market
 value.


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.


This news release does not constitute an offer to sell or a solicitation
 of an offer to buy any of the securities in the United States.  The
 securities have not been and will not be registered under the United
 States Securities Act of 1933, as amended (the "U.S. Securities Act"),
 or any state securities laws and may not be offered or sold within the
 United States or to United States Persons unless registered under the
 U.S. Securities Act and applicable state securities laws or an
 exemption from such registration is available. 


This news release is not for distribution to United States newswire
 services or for dissemination in the United States.


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. 


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pROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040 br/ ua href="mailto:[e-mail]"[e-mail] /a/u  br/ ua href="http://www.forestgate.ca"WWW.FORESTGATE.CA/a/u/p

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