20th Jul 2006 07:01
Forum Energy Plc20 July 2006 20 July 2006 Forum Energy Plc ("Forum" or "the Company") Coal production commences Coal production commences through accelerated development program Forum Energy plc, the AIM-quoted energy group operating in the Philippines, ispleased to announce the start of production from its Naga coal mine operationsin Central Cebu. First sales of coal are targeted for August 2006 and the Company intends todevelop a further four shafts at Naga to raise production to circa 300,000tonnes a year by the end of 2008. Newly-appointed Forum Chief Executive Russell Harvey commented: "The commencement of coal production represents a major step forward by Forum inproviding early cash flow. The coal development has been accelerated to takeadvantage of the infrastructure which has already been put in place. This willmaximise value to shareholders and at today's prices the predicted revenues fromNaga based upon conservative production figures could yield approximately US$12mper year by the end of 2008. A similar development programme at Dalaguete, ourSouthern Cebu coal contract, is planned for 2007. This is also anticipated togenerate comparable revenues at peak production. "We see this initial development of our reserves as the start of a continuingrevenue generating operation. With this in mind Forum has already applied fortwo additional coal production licences in the Naga area." For further information please contact: Russell Harvey, Chief Executive, Forum Energy Plc: +44 (0) 1932 445 344 Mark Froggatt, Noble & Company Limited: +44 (0) 20 7763 2200 Ian Foster, First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7739 185 050 Or visit the Company's website: www.forumenergyplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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