FEC RESOURCES INC. (PINK: FECOF) (“FEC” or the “Company”) announces that Forum Energy Limited (“FEL”) continues with its preparations for the drilling of two exploratory wells on Service Contract 72 (“SC 72”) by June 2022 as required to keep SC 72 in good standing. FEL has submitted a pre-drilling costs funding request FEC’s share of which will be approximately $224,400. To fund this amount FEC has today sold the FEL loan it owns to PXP Energy Corporation, at face value plus accrued interest. The proceeds from the sale will be used to fund FEC’s share of FEL’s pre drilling costs referred to above and any remaining funds will be used for working capital purposes.
Shareholders should be aware that the drilling of two wells will require a significant amount of funding by those involved in SC 72, including FEL and this could result in FEL being diluted in SC72 or FEC being diluted in FEL or both.
On behalf of the Board of,
FEC Resources Inc.
Director and Chief Executive Officer
FEC cautions that this release contains forward-looking statements, including, without limitation, statements relating to the use of funds and the drilling of two exploratory wells by FEL. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things; our ability to continue as a going concern; our ability to fund the pre-drilling and drilling costs; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see FEC’s filings with the Securities and Exchange Commission, including our most recent annual report on Form 20-F and quarterly report on Form 6-K. FEC cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
For more information please e-mail info@FECResources.com or visit the FEC Resources website at www.fecresources.com