Interim Results

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 2012.

Forum recorded a loss of US$1,696,000 for the interim period ended 30 June 2012 (profit - US$3,322,000 for interim period ended 30 June 2011).

The loss for the period compared to the profit for 2011 is principally due to income from the Galoc field (in which Forum holds a 2.27% equity interest) being 87% lower than the 2011 interim period due to the temporary suspension of production at the Galoc oil field (SC-14C) which was required whilst the Floating Production, Storage and Offloading vessel was upgraded. Production at the Galoc field has subsequently recommenced at normal rates.

Operational Highlights

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

·; Development of Libertad Gas Field (SC40) by DESCO with first commercial production in Q1 2012, with expected net income to Forum to be modest on an annual basis;

·; Completion of Galoc oil field, Floating Production, Storage and Offloading vessel upgrade in Q1 2012.

Financial Highlights

·; Revenues of US$1,346,000 (US$7,556,000 - 30 June 2011);

·; Gross Profit of US$30,000 (US$4,557,000 - 30 June 2011);

·; Loss before tax of US$1,696,000 (profit before tax of US$3,322,000 - 30 June 2011);

·; Working capital of US$6.9m as of 30 June 2012, of which $5m remained available as undrawn loan facility from Philex (US$3.4m - 30 June 2011);

·; US$4.4m settlement of legal dispute with Basic Energy Corporation relating to deferred consideration on assets acquired in the North Palawan area, which has been capitalised as Galoc acquisition costs;

·; Exercise of 2,185,000 options during the period by Directors and staff at US$0.484;

·; Increase in loan facility provided by Philex Mining Corporation (the parent Company of Forum's two principal shareholders) from US$10m to US$15m for short-term working capital purposes and repayable in November 2013.

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 2012

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2012

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CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2012

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UNAUDITED NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the period ended 30 June 2012

1. Accounting Policies

Basis of preparation

The interim financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted for use in the EU. The interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial statements for the year ending 31 December 2012.

2. Financial Reporting Period

The interim financial information for the period 1 January 2012 to 30 June 2012 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 2011 to 30 June 2011 and the audited financial year ended 31 December 2011.

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 2011 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 auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

3. Loss/(profit) Per Share

The calculation of basic and diluted loss per share has been based on the loss for the period of US$1,607,000 (30 June 2011 profit - US$3,354,000).

The basic weighted average number of equity shares in issue for the period is 33,799,450 ordinary (30 June 2011: 33,364,533).

The diluted weighted average number of equity shares in issue for the period is 33,799,450 ordinary (30 June 2011: 35,559,533).

The corresponding figures for the year ended 31 December 2011 were: profit attributable to equity holders of the Company of US$3,457,000 and weighted average number of shares 33,364,533.

4. Intangible Assets

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

SC40 - US$27,920,000 (31 December 2011: US$29,024,000) & (30 June 2011: US$28,838,000)

SC72 - US$23,007,000 (31 December 2011: US$21,474,000) & (30 June 2011: US$20,399,000)

Others - US$467,000 (31 December 2011: US$232,000) & (30 June 2011: US$225,000).

5. Functional Currency

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

6. Going Concern

The Directors have considered the Group's current position. Forecast cash flows and nature of discretionary spend support the assessment that the Group is a going concern. In addition, the Directors are considering future funding options to meet the funding requirements of the drilling programme at SC72.

7. Additional Information

Further 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.

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