Forward’s assets, liabilities, and results of operations will be fully consolidated with those of MediaTechnics. Its current management will remain in place, and long-term employment agreements are being negotiated.
Forward owns oil and natural gas leases in Montana that it asserts have proved undeveloped reserves approaching 200,000 barrels of oil in two wells. It has contracts to sell all of the oil they produce at the wellhead, at a discount to NYMEX of approximately $15 per barrel.
Swab tests have been conducted on the wells, production and capital deployment plans are being formulated, and Forward and MediaTechnics intend to implement these plans soon.
Forward also believes that it has considerable other unproved reserves of oil and gas, but has made no estimate of the quantity, quality or actual existence of any other reserves. Forward is developing plans to drill additional wells on its leases.
MediaTechnics intends to raise the capital necessary to drill these additional wells, subsequent to the start of production from either of the existing wells.
