2010-03-10-2009-12-15-2009-12-15

Acquired additional 116,000 gross acres in Iron County, UT.

Forest Gate Energy Inc., Montreal, (Toronto Venture: FGE) has acquired an additional 116,000 gross acres in Iron County, Utah, from privately held, Calgary-based Vanterra Energy Inc. for US$390,000.

In December 2009, Forest Gate agreed to acquire interests in 5,000 gross acres in exchange for drilling and completion costs, estimated at $1.19 million, from Vanterra. Under the new agreement, Forest Gate is no longer responsible for well costs on the acreage.

The previously acquired Iron County licenses include a 52% interest in approximately 2,560 gross federal acres with a 10-year term ending in 2016; and 52% to 70% interests in approximately 2,600 freehold acres with a five-year renewable term ending in 2010. The licenses are accompanied by an extensive suite of geological and geophysical data acquired over a 15-year period.

Forest Gate says it also has interests ranging from 37.5% to 50% in licenses covering 2,160 gross acres (820 net) in Crescent Junction, in Grand County, Utah. Forest Gate will pay the drilling costs for a 3,600-foot well set to spud Jan. 31.

The acquisitions were financed with proceeds from the Forest Gate's recent financing.