Libertad Gas Field

Forum Exploration Inc. (FEI), formerly Cophil Exploration Corp. is the operator of Service Contract 40 (SC 40) or Libertad Gas Field. the gas field is 100% operated by FEI, a company owned by Forum Energy Corporation of Canada and local firm Forum Pacific, Inc. FEI was awarded SC 40 by the DOE in 1995. Under the contract, FEI shall be responsible for the execution of the operations and shall assume exploration risks.

SC 40 covers the northern half of Cebu Island plus part of the Tañon Strait to the west and of the Visayan Sea to the north. Specifically, the Libertad Gas Field is located southeast of Bogo town proper in northern Cebu.

The SC 40 Contractors are undertaking a 25-year production program that started in November 2005 following the Joint Determination of Commerciality of the onshore Libertad Gas Field by FEI and DOE. FEI initially intended to produce the gas for power generation. However, in 2006, the DOE mandated Forum to seek partners to develop the field with Forum only as a supplier of natural gas. Thus, FEI is authorized to sell natural gas from the Libertad Gas Field as confirmed by DOE in the Letter of Confirmation dated February 26, 2007.

In January 30, 2009, FEI and DESCO, Inc. signed a Gas Sales and Purchase Agreement (GSPA) for the development of the Libertad Gas Field for power generation. The GSPA entails commercial gas extraction and installation & operation of 1 MW natural gas-fired power plant using GE Jenbacher gas engine. The power plant shall be connected to the distribution facilities of the Cebu Electric Cooperative II (CEBECO II), the buyer of power generated by DESCO.