Forent Energy Ltd. ("Forent" or the "Corporation") (TSX VENTURE:FEN) announced today that it has received notice from Perisson Petroleum Corporation ("POG") that it will not be proceeding with the previously announced amalgamation with Forent. The amalgamation was first announced on March 7, 2016 and was intended to close by year-end 2016 at the latest. A key condition of the amalgamation was that POG was to raise $40 million in new equity. As they have failed to raise that amount, Perisson considers the Amalgamation Agreement to have expired.
Forent reserves all available legal remedies to compensate for POG's failure to honour the terms of the Amalgamation Agreement. The board of directors of Forent has established an independent committee to investigate strategic alternatives for the Company. Forent also announced that Brad Perry, Forent's CFO has tendered his resignation and that Greg Florence CPA, CMA has been hired as contract CFO, effective immediately.
Forent Energy Ltd. is a Calgary-based junior oil and natural gas producer focused on near-term growth through asset acquisitions, infill development drilling of oil producing properties in Southern Alberta and exploration drilling for high impact, multi-zone oil and gas potential at Montgomery, Alberta. Forent is well positioned for growth as it has an experienced, technically based management team, strong board of directors, sustainable production base and manageable debt.
The Company’s shares trade on the TSX Venture Exchange under the symbol FEN.
SOURCE: Forent Energy Ltd.
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