Interim Results

26 July 2013

Forum Energy Plc

("Forum" or "the Company")

Interim Results

Forum, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, today announces its unaudited interims for the six months ended 30 June 2013.

Forum recorded a loss of US$2,751,000 for the interim period ended 30 June 2013 (Loss - US$1,696,000 for interim period ended 30 June 2012) (Loss - US$26,424,000 for year ended 31 December 2012).

Revenues for the period were US$2,244,000 (US$1,346,000 for the interim period ended 30 June 2012) (US$4,522,000 for the year ended 31 December 2012). This increased revenue reflected the fact that the Galoc field operated normally throughout the period, whereas it did not operate for the first four months of 2012 whilst the facilities were being refurbished.

Operational Highlights

·; Unable to commence SC72 drilling programme due to the on-going territorial dispute between the Philippine and Chinese governments and granted an extension to August 2015 to complete the second sub-phase obligations of drilling wells on SC72; and

·; Participated in the Galoc Phase II development which is progressing on schedule with the first oil expected in the fourth quarter of 2013.

Financial Highlights

·; Revenues of US$2,244,000 (US$1,346,000 - 30 June 2012) (US$4,522,000 - 31 December 2012);

·; Gross Profit of US$374,000 (US$30,000 - 30 June 2012) (US$918,000 - 31 December 2012);

·; Loss before tax of US$2,228,000 (US$1,696,000 - 30 June 2012) (US$26,424,000 - 31 December 2012);

·; Net loss of US$2,751,000 (US$1,696,000 - 30 June 2012) (US$26,424,000 - 31 December 2012);

·; Cash of US$2,807,000 at 30 June 2013 (US$1,171,000 - 30 June 2012) (US$5,760,000 - 31 December 2012);

·; Drawdown of US$1,161,000 under the BNP facility agreement for the development of Galoc Phase II;

·; Continued discussions with major shareholders, Philex Mining Corporation, regarding the potential extension of the loan agreement of US$15,000,000 which is expected to be approved in the coming months; and

·; The directors continue to review the funding options required for the SC72 drilling programme.

For further information please contact:

Forum Energy Plc

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

Execution Noble & Company Limited

Harry Stockdale / John Llewellyn-Lloyd Tel: +44 (0) 20 7456 9191

Or visit the Company's website:

www.forumenergy.com

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 June 2013

___________________________________________________________________________________________

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2013

--------------------___________________________________________________________________________________________

CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2013

___________________________________________________________________________________________

.

UNAUDITED NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the period ended 30 June 2013

1. Accounting policies

Basis of preparation

The annual financial statements of Forum Energy are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The unaudited condensed consolidated financial information for the six months ended 30 June 2013 included in this interim financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union.

The interim financial report does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the consolidated financial statements in the Forum Energy Annual Report and Accounts for the year ended 31 December 2012. The accounting policies adopted in the preparation of the interim financial report, the significant judgments made by management in applying the Group's accounting policies, and the key sources of estimation uncertainty are consistent with those followed in the preparation of the Group's financial statements for the year ended 31 December 2012. Any new and revised standards have had no effect on the reported financial results or the disclosures in this interim financial report.

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 allocation of resources and assess their performance:

The segmental results for the period ended 30 June 2013 are as follows:

The segmental results for the period ended 30 June 2012 are as follows:

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

The segmented assets and liabilities at 30 June 2013 are as follows:

The segmented assets and liabilities at 30 June 2012 are as follows:

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

Other segmented items 30 June 2013 are as follows:

Other segmented items 30 June 2012 are as follows:

Other segmented items 31 December 2012 are as follows:

Revenue

All of the 2013 revenues (2012 - 100%) were generated from Philippine based assets the Galoc, Nido & Matinloc fields.

3. Financial reporting period

The interim financial information for the period from 1 January 2013 to 30 June 2013 is unaudited. In the opinion of the Directors the interim financial information for the period presents fairly the financial position, and results from operations and cash flows for the period and are in conformity with generally accepted accounting principles consistently applied. The accounts incorporate comparative figures for the interim period 1 January 2012 to 30 June 2012 and the audited financial year to 31 December 2012.

The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006.

The comparatives for the full year ended 31 December 2012 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified,  but included a reference to going concern issues, which the auditors drew attention to by way of emphasis, without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

4. Taxation expense

The taxation expense is due to tax charges on other income of US$1,804,000 received in 2012 (2012: $nil).

5. Loss per share

The calculation of basic and diluted loss per share has been based on the loss for the period attributable to equity holders of the Company of US$2,803,000 (30 June 2012 - US$1,607,000).

The basic and diluted weighted average number of equity shares in issue for the period is 35,549,533 ordinary (30 June 2012: 33,799,450).

The corresponding figures for the year ended 31 December 2012 were: basic and diluted loss attributable to equity holders of the Company of US$26,256,000 and weighted average number of shares 35,549,533.

6. Intangible assets

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

SC40 - US$3,410,000 (31 December 2012: US$3,250,000) (30 June 2012: US$27,920,000)

SC72 - US$24,072,000 (31 December 2012: US$23,765,000) (30 June 2012: US$23,007,000)

SC6/SC14 - US$2,386,000 (31 December 2012: US$1,036,000) (30 June 2012: US$467,000).

7. Inventories

Inventories include $1,321,000 (2012: $nil)of surplus drilling equipment stated at the lower of their net book value and net realisable value.

8. Trade payables and other payables

Trade payables include $2,705,000 (2012: $nil) due for drilling equipment which is due for payment in August 2013.

9. Functional Currency

All amounts have been prepared in US dollars, this being the Group's functional currency and its presentational currency.

10. Going Concern

The Directors are of the opinion that the Group currently has sufficient funds to meet their obligations and commitments as they fall due in the foreseeable future and has therefore adopted the going concern basis in preparing the interim financial statements. The Group is currently conducting exploration and development activities using existing funds including those generated by the Group's interests in producing assets, including Galoc and SC14. The Directors are currently in discussions with Philex Mining Corporation regarding the outstanding US$15 million loan facility which is due for repayment by 24 November 2013 and are confident that they can reach an agreement on revised terms to extend the repayment date beyond 2014, before repayment comes due. The Directors are currently reviewing various funding options to fund the continued development of SC72 once the territorial dispute between the Philippine and Chinese governments has been resolved.

The Group considers that it retains the strong support of its ultimate controlling shareholder, Philex Mining Corporation as exercised through its shareholdings in Philex Petroleum Corporation. The Directors are confident that the required loan extension will be obtained but note that as this has not been secured as at the date of this report this creates a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern.

11. Additional Information

Copies of the Interim Statement are available from the Company Secretary, Forum Energy plc, 120 Bridge Road, Chertsey, Surrey KT16 8LA, United Kingdom, Tel: +44 (0)1932 445 344 E-mail: [email protected] or downloaded from the website: www.forumenergyplc.com.

- End -