Geopolitical Disputes and Sovereignty Risk: The company's primary asset, Service Contract 72 (SC72) in the Reed Bank area, lies within a territory disputed by the Philippines and China, creating significant political and diplomatic obstacles that hinder exploration and development activities.

Exploration Success Uncertainty Risk: There is no guarantee that exploration efforts will lead to the discovery of commercially viable hydrocarbon reserves, meaning substantial capital expenditure could be incurred without any return on investment.

Capital Raising and Liquidity Risk: Forum Energy requires significant capital to fund its exploration and potential development activities, and its ability to raise sufficient funds from investors or secure project financing is crucial but uncertain, posing a threat to project progression.