Forward Energy has made substantial investments to recomplete two wells, and that work has concluded, and asserts that these wells have proved undeveloped reserves approaching 200,000 barrels of oil. The company has contracts to sell all the oil it produces at the wellhead, at a discount to Nymex of approximately $15.00 per barrel.
Forward also believes that significant reserves of natural gas exist in the general area of its properties, and these reserves are, generally attendant to existing oil reserves found nearby.
The company 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.
The acquisition, if completed, will include consideration consisting of some combination of preferred stock and/or the assumption of debt and commitments to raise the capital necessary to purchase pumping equipment and begin production.
The parties expect to close the acquisition by April 10, 2010.
