Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Receives Notice of Default
Company Has 60 Days to Fund Celtic Sea 2008 Program
Montreal, QC - July 4, 2008 - Forest Gate Resources Inc. (the "Company") reports that, in accordance with the Joint Operating Agreement ("JOA") dated June 29, 2007, it has been issued a Notice of Default from the Operator for its failure to pay its June 3, 2008 cash call within a specified period of time.
"We have informed our consortium partners that we will continue to try to fund our share of this year’s program through the sixty day default period," said Michael Judson, President and CEO of Forest Gate. "We continue to believe that institutional oil investors will yet return to the market."
Under the terms of the JOA, Forest Gate has sixty days from the notice date of July 3, 2008 to remedy the default by paying the full amount of the outstanding balance to the Operator. In the event that the default continues for more than sixty days, Forest Gate will forfeit its interest in the Celtic Sea project.
A new video from Michael Judson, President and CEO of Forest Gate Resources, will be available for viewing on the company’s website (www.forestgate.ca) on Monday, July 7.
About the Company
Forest Gate Resources Inc. is an international oil & gas exploration company. The company is seeking to
increase shareholder value through participation and development of oil & gas exploration and production
projects in Ireland and Canada. The Company's shares trade under the symbol FGT on the TSX Venture
Exchange.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
About Forward-Looking Information and Statements
This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
