Final Results

20 February 2013

FORUM ENERGY PLC

("Forum Energy" or the "Company")

Audited results for the year ended 31 December 2012

Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today announces its audited results for the year ended 31 December 2012.

Operational Highlights

·; SC72 seismic interpretation and resources update completed in April 2012, which showed an improvement in the resources previously known and supported the case to proceed with the drilling programme

·; Granted an extension to August 2015 to complete the second sub-phase obligations of drilling wells on SC72

·; Libertad Gas Field power generation commenced in February 2012

·; Upgrade of the Galoc floating production, storage and offloading vessel completed on schedule in March 2012

·; Participation in the Galoc Phase II development approved

Financial Highlights

·; Revenues of US$4.5 million in 2012 (2011: US$12.7 million)

·; Gross Profit of US$0.9 million in 2012 (2011: US$5.8 million)

·; Net Loss of US$1.0m before impairment charge in relation to SC40 (2011: profit US$3.4 million)

·; Non-core investment in SC40 written down by US$25.4 million to US$3.3 million

·; Net Loss of US$26.4 million after SC40 impairment charge

·; Cash of US$5.8 million at year end (2011: US$2.8 million)

·; Loans payable at year end $15 million (2011: $6 million), due to Philex Mining Corporation

Robin Nicholson, Executive Chairman, commented:

"Whilst our net loss this year was significant, this predominantly related to our recognition of the need to revalue our non-core assets at SC40, following receipt of a new independent report on resource estimates. We remain focused on our key asset, SC72, and on our goal of establishing the commerciality of the potential hydrocarbon resources within the SC72 Concession."

For further information please contact:

Forum Energy Plc

Andrew Mullins, Executive Director Tel: +44 (0) 1932 445 344

 Execution Noble & Company Limited

Harry Stockdale Tel: +44 (0) 20 7456 9191

 Or visit the Company's website:

www.forumenergyplc.com<http://www.forumenergyplc.com>

OVERVIEW

Forum's principal asset is a 70% interest in Service Contract 72 'SC72' an 8,800-square kilometre ('Km2') offshore petroleum licence situated west of Palawan Island in the West Philippine Sea. In 2006, results from a 248 Km2 3D seismic survey over the licence area indicated a mean volume of 3.4 trillion cubic feet ('TCF') gas-in-place ('GIP') with significant upside potential. It is a primary objective of the company to establish the commerciality of the hydrocarbons within SC72.

In March 2011, a total of 565 Km2 of 3D seismic data was acquired over the Sampaguita Gas Field and 2,202 Line-Km of 2D seismic data was acquired to further define additional leads identified within the SC72 acreage and to possibly upgrade existing leads to prospects. This work, which satisfied Forum's obligations with the Philippine Department of Energy under the first sub-phase of the SC72 contract, was primarily designed to provide a more comprehensive evaluation of the SC72 property and to identify potential sites for appraisal wells.

SC72 seismic interpretation and resources update was completed in April 2012, which showed an improvement in the resources previously known and supported the case to proceed with the drilling programme.

During 2012, the increased territorial disputes between the Philippine and Chinese governments resulted in the Company being unable to obtain permission to deploy vessels to perform the planned drilling programme. Recognizing that these matters were beyond the control of the Company, in January 2013 the Philippine Department of Energy granted an extension to August 2015 for the Company to complete its second sub-phase work obligations which are expected to cost in excess of US$50 million.

During the year, the Company commissioned a third party review of the prospects for Service Contract 40 ("SC40") which resulted in a write-down of the carrying value of the investment in SC40 by US$25.36 million. The Company will continue to undertake exploration work on this property and look for opportunities to farm out further segments of the block to replicate the producing Libertad Gas field model which came into production in 2012.

ASSET SUMMARY

SC72 (70% interest)

The SC72 license was awarded on 15 February 2010. It covers an area of 8,800 Km2 and contains the Sampaguita Gas Discovery which has the potential to contain In-Place Contingent Resources of 2.6 trillion cubic feet (TCF) of gas plus another In-Place Prospective Resources totaling 5.4 TCF based on a resource assessment performed in 2012 by Weatherford Petroleum Consultants, an independent qualified competent person. The results of the study were used to define the location of two wells, to be named Sampaguita-4 and Sampaguita-5, which if successfully drilled, would be expected to increase the amount of potentially recoverable resources. The drilling of two wells is part of the work programme of the Company for the second-sub-phase of SC72, which must be completed by 14 August 2015, having recently been granted an extension by the Philippine Department of Energy.

Galoc (2.27% interest)

Production from the Galoc development reached 1.5 million barrels gross in 2012 and is expected to produce 2.6 million barrels in 2013. The Company has a 2.27% interest in the field and received US$2.5 million (US$10.1 million in 2011) after deduction of share of operating costs from crude sales from the field during the year. A second phase of development is expected to commence in the second half of 2013 with the drilling of two additional production wells, which is expected to boost production from the current 5,410 gross barrels of oil per day (bopd) to 12,000 bopd in the third quarter of 2013. The company secured US$2.58 million of financing from BNP Paribas to fund 60% of the estimated US$4.33 million share of development costs for this phase of the project.

SC40 (66.67% interest)

SC40 contains the Libertad gas field and the Maya field as well as several prospects and leads. On 30 January 2009, Forum entered into a Gas Sale & Purchase Agreement ("GSPA") with Desco, Inc., for the development of the Libertad gas field for power generation. On 6 February 2012, commercial production at the Libertad Field commenced and, as at 31 December 2012, the field has produced around 72.5 million cubic feet of gas gross. However these revenues are not material to the Group's cash flow. Having received a resource assessment from Petroleum Geo-Services Asia Pacific Pte Ltd (PGS) on 19 February 2013, an independent competent person, the investment in SC40 was written down by $25.4 million to $3.25 million. An important factor in this assessment was that third parties had experienced a dry hole while drilling within the Central Tañon Straits which significantly reduced the likelihood of a commercially viable hydrocarbon deposit in this region.

 LATEST RESOURCE ESTIMATES AT SERVICE CONTRACT 40

On 19 February 2013, the Company was presented with a new competent persons report, prepared by PGS on the SC40 contract area. SC40 contains a developed gas field, two tested oil prospect s and nine untested oil and gas exploration leads and prospects. This report included probabilistic resource estimates for the gas field and all of the leads and prospects, as follows:

SC40 - In-place Reserves:

SC40 - In-place Contingent Resources:

SC40 - In-place Prospective Resources:

The net attributable amounts in respect of SC40 represent the Company's 66.67% interest in the estimated resources. These pre-drill estimates of resources are based on certain assumptions and the information and interpretations currently available. There can be no assurances that these assumptions or estimates will prove to be accurate as future technical evaluations and results, including drilling results, could lead to variations or differ materially from those included in PGS' report.

The methods and terms used in the preparation of these summaries are in accordance with Society of Petroleum Engineers guidelines. For more details please refer to www.spe.org.

In accordance with AIM Guidelines, Mr. A.J. Williams, BSc (Hons) in Geology, a distinguished member of the Petroleum Exploration Society of Australia (PESA) and a member of the American Association of Petroleum Geologists (AAPG) is the qualified person that has reviewed the technical information in relation to SC40 contained in the tables above. Mr Williams has 32 years of varied petroleum geology, geophysics and resource management experience and is a manager of Reservoir Group at Petroleum Geo-Services Asia-Pacific Pte Ltd, an independent consultancy specialising in petroleum reservoir evaluation and economic analysis.

LATEST RESOURCES AT SERVICE CONTRACT 72

In 2012, Weatherford Petroleum Consultants ("Weatherford") completed a report on SC72, which took into account the 2,202 Line-Km of 2D seismic data over SC72 and 565 Km2 of 3D seismic data over the Sampaguita Gas Field in SC72. Weatherford produced the following summary of unrisked resources initially in place:

SC 72 - In-place Contingent Resources

SC 72 - In-place Prospective Resources

The net attributable amounts in respect of SC72 represent the Company's 70% interest in the estimated resources. These pre-drill estimates of resources are based on certain assumptions and the information and interpretations currently available. There can be no assurances that these assumptions or estimates will prove to be accurate as future technical evaluations and results, including drilling results, could lead to variations or differ materially from those included in Weatherford's report.

The methods and terms used in the preparation of these summaries are in accordance with Society of Petroleum Engineers guidelines. For more details please refer to www.spe.org.

EXECUTIVE CHAIRMAN'S STATEMENT

Dear Shareholder,

2012 has been a year of mixed fortunes. Whilst we received an independent report on Service Contract 72 in April 2012 which indicated increased resources, we were unable to commence our drilling programme because of territorial disputes between the Philippine and Chinese governments. However, we have been granted an extension to August 2015 to allow us to complete our obligations under this service contract. We have also more recently received an independent report on the properties covered by Service Contract 40, which has resulted in this investment being written down by over 85%. The Galoc Field, which has been a steady provider of cash to fund our operations, was closed for the first quarter of the year to allow for a scheduled upgrade of its facilities. However the field is now back in full production and we are optimistic about benefits we hope to receive from the Phase II development.

Service Contract 72

In the early part of 2012, we received encouraging results from our analysis of the 2011 seismic work following the acquisition of 2,202 line-km of 2D and 565 km2 of 3D seismic data over our SC72 licence area between 15 January and 12 March 2011. The resource assessment study was conducted by Weatherford Petroleum Consultants, an independent consulting group, in the first half of 2012 and supported the case to proceed with the drilling programme.

We were unable to commence our drilling programme because of territorial disputes between the Philippine and Chinese governments. However the Philippine Department of Energy ("DOE") granted us an extension to August 2015 to allow us to complete our obligations under this service contract.

In the meantime, and recognizing our on-going commitment to the project, a seismic reprocessing program is being planned in 2013 to further assess the prospectivity of other areas outside the Sampaguita field within SC72. The programme will concentrate on mapping other prospects and leads outside the Sampaguita discovery.

We remain in close dialogue with the Government on how best to progress the development of this important asset and will of course be keeping our shareholders appraised of progress throughout the year.

Galoc

The Company has a 2.27% interest in the Galoc oil field. Gross production during the year averaged 5,410 barrels of oil per day (bopd) (2011: 6,637 bopd) producing for 268 days (2011: 320 days). Production reached 1.5 million barrels gross in 2012 and is expected to produce 2.6 million barrels gross in 2013. Receipts totalled US$2.5 million (US$10.1 million in 2011) after deduction of share of operating costs from crude sales from the field during the year. A second phase of development is expected to commence in the second half of 2013 with the drilling of two additional production wells, which is expected to boost gross field production from the current 5,410 bopd to 12,000 bopd. The company secured US$2.58 million of financing from BNP Paribas to fund 60% of the estimated US$4.33 million share of development costs for this phase of the project. An exploration well is also being planned at Galoc to test another prospect adjacent to the Galoc Field, although this remains a contingent programme.

Service Contract 40

On 6 February 2012, commercial production at the Libertad Field commenced and, as at 31 December 2012, the field had produced around 72.5 million cubic feet of gas gross representing net revenues of US$88,000.

In 2012, the Company commissioned a resource assessment study to be undertaken by Petroleum Geo-Services Asia Pacific Pte Ltd (PGS) , who are an independent competent person. The results of the study, received on 19 February 2013, downgraded previously identified leads and prospects within SC40. An important factor in this assessment was that third parties had experienced a dry hole in drilling efforts within the Central Tañon Straits which significantly reduced the likelihood of the existence of a commercially viable hydrocarbon deposit in this region. In light of this report, and applying appropriate caution, the carrying value of the investment in SC40 has been written down by US$25.4 million to US$3.25 million. This carrying value reflects the potential of a number of smaller onshore locations within SC40.

The search for other commercial deposits across the SC40 acreage does however continue, with an exploration programme consisting of seismic reprocessing and interpretation as well as a land gravity survey being planned for 2013. Whilst this further work is planned within 2013 to assess the onshore prospects of SC40 it cannot be said with any certainty at this point that further work will lead to any commercial realization in the near term.

The Philippine Economy and Outlook

The World Bank predicts an above 6% economic growth for the Philippines for the next three years, with 6.2% for 2013. This will be driven by increased infrastructure spending, higher demand for exports, overseas workers' remittances, and strong consumer consumption. A midterm election scheduled in May 2013 would help boost spending as well.

The search for new oil and gas deposits in the country is expected to continue in 2013 with the award of new petroleum and coal contracts following a bidding round that was undertaken in 2012. The next phase of development in the Galoc and Malampaya fields in Palawan would help boost indigenous oil and gas production, respectively. Well drillings and seismic surveys are also being planned for the year, mostly in the Palawan and Sulu Sea areas.

Financial Results and Key Financial Indicators

The Group recorded a gross profit of US$0.9 million for the 12 months ended 31 December 2012 compared to US$5.8 million profit for the previous year. Our revenues decreased by 64% to US$8.2 million due to a decrease in production at Galoc, from 6,637 bopd in 2011 to 5,410 bopd in 2012, principally as a result of the shut-in of the field during the upgrade of the FPSO in the first half of the year.

The Group recorded a net loss after tax of US$26.4 million after impairment charges, compared to a net profit after tax of US$3.4 million in 2011. This generated a loss per share of US$0.743 (2011: earnings per share US$0.104) including impairment of deferred exploration assets.

During the year, the Company spent US$2.3 million (2011: US$7.8 million) developing its principal asset, SC72.

Cash Flow

The Company's working capital increased from US$0.7 million to US$6.1 million, excluding the loan from Philex Mining Corporation. Cash and cash equivalents at the end of the period stood at US$5.8 million. The outstanding amount of the loan with Philex Mining Corporation was US$15 million.

During the year, payments totalling US$3.4 million (2011: US$4.9 million) were made to Basic Energy under the 2006 purchase agreement of the Company's Northwest Palawan assets, which included Galoc. It has been agreed that final liabilities to Basic Energy totalling US$1 million at year end will be settled during 2013.

Outlook for 2013

We remain focused on our goal of establishing the commerciality of the potential hydrocarbon resources within the SC72 Concession, but recognize that we face significant challenges in the West Philippine Sea where SC72 is located. We appreciate that this goal can only be realized with the continuing support of the Philippine Government.

I would like to take this opportunity once again to thank our shareholders, our staff, and members of the Board of Directors, for their continuing support and commitment.

Robert Nicholson

Executive Chairman

19 February 2013

Consolidated statement of comprehensive income

for the year ended 31 December 2012

Year ended Year ended

31 December 31 December

2012 2011

Revenue 4,522 12,734

Administrative expenses (2,750) (1,987)

 (Loss)/profit from operations (25,387) 3,834

Finance income 1 7

(Loss)/profit before tax (26,424) 3,420

(Loss)/profit and total comprehensive (loss)/profit attributable to:

Owners of the Parent (26,256) 3,457

Non-controlling interest (168) (37)

(26,424) 3,420

US Cents US Cents

(Loss)/earnings per Ordinary Share (US cents) attributable to equity holders of the Parent

All of the results of the Group during the year relate to continuing activities.

Statement of changes in equity

for the year ended 31 December 2012

Share Non- Total capital

Share Share option Retained controlling and

capital premium reserve deficit Total interest reserves

Balance as at 1 January 2011 5,982 50,964 438 (14,709) 42,675 1,334 44,009

Balance as at 31 December 2011 5,982 50,964 438 (11,252) 46,132 1,297 47,429

Share capital represents the nominal value of shares issued. The share premium account holds the balance of consideration received in excess of the par value of the shares.

The share option reserve relates to the cumulative fair value of options charged to the statement of comprehensive income adjusted for transfer on exercise, cancellation or expiry. The transfer of $438,000 between share option reserve and retained deficit during 2012 is due to the exercise of all options during 2012.

The retained deficit is the cumulative net gains and losses recognised in the statement of comprehensive income adjusted for transfer on exercise, cancellation or expiry of options from the share option reserve.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 31 December 2012

2012 2011

Assets:

Non-current assets

Property, plant and equipment 6 7,104 5,888

Intangible assets 7 28,051 50,730

Current assets

Inventories 70 57

Trade and other receivables 2,351 1,862

Liabilities:

Non-current liabilities

Loans - 6,000

Total non-current liabilities 4,181 9,929

Current liabilities

Loans 15,000 -

Capital and reserves attributable to equity holders of the Company

Share capital 6,322 5,982

Share premium 51,680 50,964

Share option reserve - 438

20,932 46,132

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 December 2012

Year ended Year ended

31 December 31 December

2012 2011

Cash flows from operating activities

(Loss)/profit before tax for the year (26,424) 3,420

Adjustments for:

Depreciation 2,039 4,718

Impairment charge 25,359 -

Loss/(gain) on financial assets 13 (6)

Finance income (1) (1)

Foreign exchange losses 456 160

Increase in trade and other receivables (489) (711)

(Increase)/decrease in inventories (13) 362

Increase in trade and other payables 381 1,547

Net cash flows from operating activities 1,947 9,750

Investing activities:

Purchase of property, plant and equipment (4,329) (6,934)

Disposal of property, plant and equipment - 1

Purchase of intangible assets 7 (3,903) (8,100)

Finance income 1 1

Net cash from investing activities (8,800) (15,293)

Financing activities:

Issue of ordinary share capital (net of issue costs) 1,056 -

Net increase in cash and cash equivalents 3,203 457

Cash and cash equivalents at beginning of the year 2,761 2,464

Notes to the financial statements

for the year ended 31 December 2012

1 ACCOUNTING POLICIES

Basis of preparation

The accounting policies have been consistently applied to all the years presented, unless otherwise stated. The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards IFRSs and IFRIC interpretations, issued by the International Accounting Standards Board ('IASB') as endorsed for use in the EU ('IFRSs') and those parts of the Companies Act 2006 that are applicable to companies that prepare their financial statements under IFRS.

The financial information for the years ended 31 December 2012 and 31 December 2011 does not constitute statutory accounts as defined by section 435 of the Companies Act 2006 but is extracted from the audited accounts for those years. The 31 December 2011 accounts have been delivered to the Registrar of Companies. The 31 December 2012 accounts will be delivered to Companies House within the statutory filing deadline. The auditor's report on those financial statements was unqualified but did include a reference to the uncertainties surrounding going concern, to which the auditors drew attention by way of emphasis and did not contain a statement under s498 (2) - (3) of Companies Act 2006.

Going concern

On 15 February 2010, the Company was awarded the Service Contract over the SC72 licence area. The first sub-phase Work Programme was completed in March 2011. The second sub-phase Work Programme originally required a minimum spend commitment of US$6 million by 15 August 2013. On 9 January 2013, a two year extension was approved by the Philippines Department of Energy. All of this expenditure remains outstanding as at 31 December 2012.

Pursuant to the Compromise Agreement reached between the Company and Basic Energy Corporation ("Basic Energy") on 21 June 2012, the Company is required to make payments totaling US$2 million to Basic Energy during 2013, of which US$1 million was outstanding as at 31 December 2012.

In addition to the above, the US$15 million three year loan facility agreement entered into between the Group and Philex Mining Corporation (the "Philex Loan Facility") is due for repayment on 24 November 2013.

Existing cash resources and revenue generated from the Galoc oil field are expected to be sufficient to allow the Group to meet the requirements of these commitments and overheads until repayment of the Philex Loan Facility falls due on 24 November 2013. At this point, further funds will be required to cover minimum spend requirements and overheads for the remainder of the 12 month going concern period.

Based on preliminary discussions with Philex, and in view of the two year extension granted for the second sub-phase by the Philippine Department of Energy, the board anticipates that the terms of the Philex Loan Facility can be renegotiated which will provide sufficient funds for a period of at least 12 months.

There can be no guarantee over the outcome of these negotiations and, as a consequence, there is a material uncertainty over the Group's ability to raise additional finance, which casts doubt on the Group's ability to continue as a going concern. Further the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

However, the Directors have a reasonable expectation that the Company and the Group as a whole have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern.

2 SEGMENT ANALYSIS

The Group has three reportable segments:

- Producing assets

- Exploration assets

- Head office costs

The operating results of each of these segments are regularly reviewed by the Board of Directors in order to make decisions about the allocationof resources and assess their performance:

The segmental results for the year ended 31 December 2012 are as follows:

Producing Exploration Head Office

assets assets costs Total

Revenue 4,522 - - 4,522

Gross profit 918 - - 918

Other income 1,804 - - 1,804

Administrative expenses (267) (292) (2,191) (2,750)

Profit/(loss) from operations 2,455 (25,651) (2,191) (25,387)

Finance income - - 1 1

Profit/(loss) for the year 2,596 (26,743) (2,277) (26,424)

The segmental results for the year ended 31 December 2011 are as follows:

Producing Exploration Head Office

assets assets costs Total

Revenue 12,734 - - 12,734

Gross profit 5,821 - - 5,821

Profit/(loss) from operations 5,686 - (1,852) 3,834

Profit for the year 5,686 (261) (2,005) 3,420

The segmented assets and liabilities at 31 December 2012 are as follows:

Producing Exploration Head Office

assets assets costs Total

Total non-current assets 7,036 28,051 79 35,166

Total non-current liabilities - (4,181) - (4,181)

Total current liabilities (1,221) (15,804) (80) (17,105)

Total liabilities (1,221) (19,985) (80) (21,286)

The segmented assets and liabilities at 31 December 2011 are as follows:

Producing Exploration Head Office

assets assets costs Total

Total non-current assets 5,811 50,730 101 56,642

Total non-current liabilities (15) (9,914) - (9,929)

Total current liabilities (3,685) (213) (66) (3,964)

Net assets 5,284 41,021 1,124 47,429

Other segmented items 31 December 2012 are as follows:

Producing Exploration Head Office

assets assets costs Total

Capital expenditure 2,860 2,213 76 5,149

Other segmented items 31 December 2011 are as follows:

Producing Exploration Head Office

assets assets costs Total

Capital expenditure 6,923 8,100 11 15,034

Revenue

All of the 2012 revenues (2011 - 100%) were generated from Philippine based assets the Galoc, Nido & Matinloc fields.

3 impairment of deferred exploration assets

Year ended Year ended

31 December 31 December

2012 2011

 Having received a resource assessment from Petroleum Geo-Services Asia Pacific Pte Ltd, an independent competent person, the investment in SC40 was written down by US$25.4 million to US$3.25 million.

The remaining balance of US$3.25million is based upon the potential recovery from the Maya and Jibitnil projects.

4 (LOSS)/EARNINGS PER SHARE

(Loss)/earnings per Ordinary Share has been calculated using the weighted average number of shares in issue during the relevant financial periods.

The weighted average number of equity shares in issue for the period is 35,549,533 (2011: 33,364,533).

Loss for the Group attributable to the equity holders of the Company for the year US$26,256,000 (2011: Profit US$3,457,000).

The effect of the share options in issue under the Share Option Plan is anti-dilutive.

5 ADJUSTED (LOSS)/EARNINGS PER SHARE

In order to show results from operating activities on a consistent basis, an adjusted earnings per share is presented which excludes certain items as set out below. It is emphasised that the adjusted earnings per share is a non GAAP measure. The Board of Forum consider the adjusted earnings per share to better reflect the underlying performance of the Group.

Year ended Year ended

31 December 31 December

2012 2011

(Loss)/profit for the Group (26,256) 3,457

6 PROPERTY, PLANT AND EQUIPMENT

Transport Furniture, Tools

Oil and gas and motor fixtures and other Group Company

costs equipment and fittings equipment Total Total

Cost

At 1 January 2012 14,830 89 215 116 15,250 34

Additions 1,934 - 97 1 2,032 77

Transfer from intangible assets 1,223 - - - 1,223 -

Depreciation

At 1 January 2012 9,019 29 198 116 9,362 34

Charge for the year 2,000 19 20 - 2,039 9

Cost

At 1 January 2011 7,907 98 206 116 8,327 34

Additions 6,923 2 9 - 6,934 -

Depreciation

At 1 January 2011 4,327 20 191 116 4,654 34

Charge for the year 4,692 19 7 - 4,718 -

Net book value

7 INTANGIBLE ASSETS

Unevaluated Unevaluated

oil, gas oil, gas

and mining and mining

costs costs

US$'000 US$'000

Cost and net book value

At 1 January 50,730 42,630

The unevaluated oil, gas and mining costs relate to the acquisition of the Group's assets in the Philippines.

The net book value of assets included within intangible fixed assets are as follows:

SC40 - US$3,250,000 (2011: US$29,024,000)

SC72 - US$23,765,000 (2011: US$21,474,000)

Others - US$1,036,000 (2011: US$232,000)

The Group have considered the intangible assets for indications of impairment and have impaired the SC40 assets to reflect their recoverable amount.

8 COMMITMENTS

At 31 December 2012, the Group and Company had commitments totalling US$2.9 million in operational and exploration expenditure, for the secondsub-phase programme over Service Contract SC72 ('SC72') (31 December 2011: US$6 million).

9 RELATED PARTY TRANSACTIONS

During the year the following related party transactions occurred within the Group and Company:

Philex Mining Corporation is the majority shareholder and ultimate controlling party of the Group.

In 2010 Forum Philippines Holdings Ltd, a wholly-owned subsidiary of the Company, entered into a US$10 million Facility Agreement ('the Facility') with Philex Mining Corporation on 24 November 2010. The facility was increased to US$15 million during 2012.

The Facility will be available for a three year period from the 24 November 2010 and funds can be borrowed at an interest rate of US LIBOR + 4.5%. During 2012 US$9 million was drawn down (2011 - US$6 million drawn down) to enable the Company to fund its 70% share of the work programme over Service Contract 72 ('SC72'). Obligations arising from funds drawn under this Facility are not convertible into the Company's or Forum Philippines' Ordinary Shares.

Amounts due to Philex Mining Corporation in respect of this facility agreement as at 31 December 2012 amounted to US$15,000,000 (2011: US$6,000,000). Interest charged for use of the facility during the year was US$569,347 (2011: US$261,952).

10 CONTINGENT LIABILITIES

The Company reached a settlement agreement on potential additional consideration in relation to assets previously acquired with Basic Energy during 2012. The Company has no further contingent liabilities.