Why oil explorer Forte Energy (ASX:FEL) is looking to South America while it seeks partners for Alaska and offshore WA

Sonal Goyal

12 November 2026 02:05 PM AEDT

Why oil explorer Forte Energy (ASX:FEL) is looking to South America while it seeks partners for Alaska and offshore WA

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Key Highlights

Forte and Autana Group will study oil opportunities in Venezuela, Colombia and Ecuador, with Forte funding up to US$150,000 in three phases.
Cash was $1.53 million at 30 September with no debt, and quarterly outgoings of only $139,000 give almost 11 quarters of funding.
Regulators approved a nine-month suspension of the WA-424-P work programme, moving permit expiry to 10 June 2029.
Forte says it is revisiting Umiat studies made at lower oil prices, and the US Bureau of Land Management waived about US$430,000 in annual Lease fees for 2026.

Forte Energy (ASX:FEL) is a small oil explorer with two wholly owned assets: the WA-424-P permit in the Browse Basin off north-west Australia, and 143,368 acres of leases in Alaska's National Petroleum Reserve. On 4 November 2026 it added a third line of work, a joint study with the privately held Autana Group into oil opportunities in Venezuela, Colombia and Ecuador.

The move fits the company's stated strategy of searching for new ventures while keeping costs low. Forte's September quarter Appendix 5B, released on 30 October 2026, showed $1.53 million in cash and no debt. Quarterly outgoings were only $139,000, which the company estimates gives almost 11 quarters of funding. Its existing projects, however, depend on finding partners to pay for drilling.

The South America study

Under the agreement, Forte and Autana would each have a 50% right to take part in any project that comes out of the study. If Forte pursues a project alone, Autana is entitled to a minimum 5% net profit interest. Forte will fund up to US$150,000 in three phases of US$50,000 each. It can withdraw at the end of any phase with no further obligation. Phase 1 covers qualification requirements and screening of opportunities in Venezuela, where Forte points to a changed political environment opening the sector to foreign participants.

This is a study, not an Acquisition or a licence. Political, sanctions and regulatory risks in Venezuela are significant, and no project or cost beyond the study budget has been committed.

Alaska: Umiat and Peritas

Forte completed its acquisition of Peritas LLC, the holder of its Alaskan leases, on 13 March 2026. The leases include the Umiat oil field, which has a discovered resource from historical drilling. In March Peritas was also named high bidder on two adjoining leases. The US Bureau of Land Management agreed to suspend the leases for the rest of 2026, waiving about US$430,000 in annual fees. Forte says it is revisiting earlier commercial studies on Umiat that were done at lower oil prices, and that costs need updating before it can judge viability. Prospective resource figures it has cited for the Harrier prospect come from a 2023 release by 88 Energy. They are estimates of potentially recoverable oil, not discovered resources.

WA-424-P extension

On 14 September regulators approved a nine-month suspension and extension of the WA-424-P work programme. This moved the end of Permit Years 1–3 to 10 June 2027 and the permit expiry to 10 June 2029. Forte said the extra time is to find a funding partner for the exploration well commitment, with the Idris prospect as the main target. It also plans to review the Gwydion oil discovery and nearby small discoveries.

Corporate history and cash

The company changed its name from IPB Petroleum and began trading as FEL on 13 February 2026. During the quarter, net operating outflows were $119,000 and capitalised exploration was $20,000. Payments to related parties, which were director fees, came to $34,000. There was no Capital raising in the quarter.

Risks and milestones

Higher oil prices have revived interest in frontier and stranded oil assets, but drilling offshore WA or in Alaska is expensive. Forte's progress depends on farm-out partners, and failure to secure one could put the WA-424-P well commitment at risk. The Alaskan lease fee Waiver currently runs only to the end of 2026. The Annual General Meeting is at 10:30am (AWST) on 27 November 2026 in West Perth. Phase 1 results from the South America study and any farm-out agreement are the next items the company has pointed to.

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