Mr. Richard Wade reports

FORENT ENERGY - OPERATIONAL UPDATE & THIRD QUARTER 2014 RESULTS

Forent Energy Ltd. is providing an operational update; it has filed its interim financial statements and MD&A (management's discussion and analysis) for the three and nine months ended Sept. 30, 2014, on SEDAR and its website.

Third quarter 2014 highlights:

• Third quarter production averaged 221 barrels of oil equivalent per day, an increase of 28 per cent over the second quarter;
• Third quarter revenues, net of royalties, exceeded $1.0-million, an increase of 36 per cent over the second quarter;
• Successfully drilled, completed and brought on production three wells in the Twining field;
• Realized oil pricing of $82.67 per bbl and natural gas pricing of $4.26 per thousand cubic feet, resulting in an average realized price of $60.06 per boe and an operating netback of $24.70 per boe;
• Achieved the highest corporate production rates and revenue for the last four years.

Financial

Forent's revenues for the three months ended Sept. 30, 2014, increased to $1.0-million, and funds flow from operations increased to $111,000.

Capital spending during the 2014 third quarter and year to date was $1.2-million and $4.5-million, respectively. The majority of the costs were to drill, complete and tie in three wells at Twining, a workover at Wayne, and mineral rights acquisitions.

Forent's net debt (calculated as current liabilities less current assets) at Sept. 30, 2014, was $5.6-million compared with net debt of $1.9-million at the beginning of the year. The company has access to a credit facility of $7.0-million (renewed in June, 2014) of which $5.9-million was drawn at the end of Q3 2014.

Production

Forent's oil and natural gas sales during Q3 2014 averaged 221 boed compared with 54 boed in Q3 2013. The rate of 221 boed was also a 28-per-cent increase over the previous quarter's results of 172 boed (second quarter). The increase from Q2 to Q3 2014 resulted from additional volumes from three new wells in the Twining field which started production midway through the quarter. For the nine-month period, oil and gas sales averaged 193 boed compared with 58 boed in the prior-year period. As of the date of this report, the new wells have stabilized, and the company's total field production is approximately 250 boed.

Operations

Forent drilled three wells on the Twining field during the second quarter. During the third quarter, the wells were completed and tied in for production. Field optimization efforts were conducted on the new 05-26 well to seal off a lower interval that was producing excess water, resulting in significantly decreased water production and associated handling costs.

In the Provost area, Forent's oil production was restricted in the third quarter due to a failing water disposal pump. The pump has subsequently been replaced, resulting in a 20-per-cent increase in water disposal capacity.

Ongoing exploration -- Montgomery

At Montgomery, the company's joint venture partner did not elect to drill an option well, citing cost overruns while drilling the 14-12 well. This option has now expired. Forent is actively in discussion with a potential partner to drill the next exploration well at Montgomery.

To date, Forent has identified four separate, naturally fractured trends at Montgomery. The 14-12 well has proven that one of the trends has been drained by the 06-06 well which produced over 1.5 million barrels of light sweet crude. The fact that the 2WS in the 06-06 and 14-12 wells is in pressure communication through a system of natural fractures, which can be identified geophysically, validates the 2WS play concept in this area. Based on the company's proprietary 3-D seismic, it has identified 12 vertical drilling locations along the remaining three undrilled trends.

Outlook

At Twining, additional oil and natural gas production from three new wells has provided incremental funds flow and has strengthened the company's asset base. These wells have had varied results, with one of the three exhibiting significantly lower production than anticipated. This well is currently shut in for pressure buildup to determine if stimulation is required.

Offsetting horizontal well production in the Pekisko formation is providing superior production rates to vertical wells. As a result, Forent is now examining a horizontal well program at Twining as the next step to the development of the property.

At Wayne, various exploitation strategies for this asset are under review. Forent has identified three (two net) horizontal development wells on held lands. The company anticipates firming up plans with its 50-per-cent-working-interest partner for a horizontal development well.

During the third quarter, Forent purchased an additional six sections of mineral rights, and has acquired more than a township of contiguous petroleum and natural gas mineral rights at Crown land sales over the last year. These lands have multizone potential for oil and natural gas from relatively shallow horizons (less than 1,300 metres), and are located within Forent's southeastern Alberta core area.

The initial development phase of the company's Twining property was the first step in its plan to materially increase oil and associated gas production during 2014. Within its portfolio, it has several additional low-risk exploitation opportunities. With the recent decline in oil prices, the company is re-evaluating the timing of its capital deployment program. In parallel, Forent continues to evaluate internally generated exploration prospects, complementary acquisition opportunities and corporate merger opportunities.

We seek Safe Harbor.