Forent Energy Announces Q3 2015 Financial and Operating Results

Press Release

CALGARY, ALBERTA (November 27, 2015) – Forent Energy Ltd. (TSXV: FEN)(“Forent” or the “Company”) is pleased to announce that it has filed its Financial Statements and Management’s Discussion & Analysis, for the nine months ended September 30, 2015, with applicable securities regulatory authorities in Canada. Copies of these documents can be accessed under the Company’s profile on the SEDAR website at www.sedar.com and on the

Company’s website www.forentenergy.com. Also, the Company has updated its corporate presentation and has made it available on its website.

Some people may view these times in the energy business with pessimism. Lack of or limited pipelines make it difficult for Canadian crude to get to world markets and achieve world price. Capital programs that would expand or maintain world oil supplies have been dramatically reduced. Cash flows are down, netbacks have narrowed or disappeared, equity markets have essentially dried up, bankers are nervous and more discerning and some bank lines are being called. Does the world no longer need crude oil? The need for gasoline still appears to exist.

We are not immune to the effects of low oil prices. It has hurt our cash flow and we have reduced compensation to the members of our team in order to reduce our overhead. Forent believes that this current economic environment creates an opportunity. Assets are available to purchase and with few potential buyers. We believe this is the time to acquire assets with large oil in place and long life reserves, positioning ourselves for the future.

We have a Board of Directors with great experience and significant ownership in the company which, when combined with management ownership approaches 50% of the outstanding shares. We are highly motivated and enthusiastic about building the assets of Forent during this time of low product prices.

CRUDE OIL ACQUISITION

Earlier this November, we announced the signing of a purchase and sale agreement to acquire oil weighted production in the Company’s core area of Twining near Three Hills, Alberta.

When this deal closes in December it will result in the addition of 250 boe/d, which will more than double the Company’s current production.

The purchase metrics are excellent and include over 70 gross sections of land (20 net) which have over 30 infill drilling locations identified for future development.

The Acquisition is summarized as follows:

• Average production 250 boe/d (68% oil and liquids)

• Purchase price of $16,000⁽²⁾ per flowing boe

Reserves Category	MBOE(1)	Acquisition cost per BOE(2)
Proved Developed producing	486.4	$8.22
Total Proved	616.2	$6.49
Proved plus probable	1,748.7	$2.29

• Acquisition gross reserves (before royalties) by Sproule based on a July 31, 2015, mechanical update of the Sproule December 31, 2014 reserve report, prepared in accordance with NI 51-101.

• Based on $4.0 million closing purchase price

Forent benefits from the Acquisition as follows:

• An increase of 100% to Forent’s current production level

• An increase of 62% to Forent’s proved developed producing reserves

• An increase of 108% to Forent’s total proved plus probable producing reserves

• An increase of 2,000% to Forent’s net land holdings in the Twining area

• The Acquisition is expected to lower Forent’s general and administration per boe by 50%

Forent’s team has identified significant upside including:

• 34 gross development drilling locations

• Stimulation of existing wells to enhance production

• Operational and facility synergies to improve efficiencies

FINANCIAL

Forent’s revenue, net of royalties, for the three months ended September 30, 2015 was $523,000 compared with $1.0 million in the prior year quarter. Q3 2015 funds outflow from operations was $362,000 compared with funds flow of $111,000 in Q3 2014. For the nine months ended September 30, 2015, Forent’s revenues net of royalties was $1.7 million compared with $2.6 million in the prior year period. Funds outflow from operations for the nine month period was $1.1 million compared with funds flow of $261,000 for the same period in 2014.

Forent’s net debt (calculated as bank debt and current liabilities less current assets) at September 30, 2015, was $5.2 million compared with net debt of $5.8 million at the beginning of the year. The Company has access to a credit facility of $7.0 million of which $5.1 million was drawn at the end of the quarter.

PRODUCTION

The Company’s production remains steady as oil and natural gas sales during the third quarter averaged 210 boe/d compared with 221 boe/d in Q3 2014. Oil and natural gas sales for the nine month period averaged 217 boe/d compared with 193 boe/d for the same period in 2014.

OUTLOOK

What is ahead for our company? More carefully considered acquisitions. Our strong technical team with the guidance and support of our Board of Directors positions us to survive the downturn in prices and to use this time as an opportunity to acquire prime assets as we build the company.

FOR FURTHER INFORMATION, PLEASE CONTACT:

FORENT ENERGY LTD.

Robyn Lore, President & CEO
Email: rlore@forentenergy.com
Phone: (403) 262-9444 #201
Web:   www.forentenergy.com

– or –

Brad R. Perry, CFO
bperry@forentenergy.com
(403) 262-9444 #208

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