Fairborne Energy Ltd.

Fairborne Energy Ltd.

November 10, 2009 19:53 ET

Fairborne Energy Ltd. Sale of Partial Interest in West Pembina Gas Plant

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2009) - Fairborne Energy Ltd. ("Fairborne" or the "Company") (TSX:FEL) is pleased to announce that it has closed a transaction to sell a portion of its working interest in the West Pembina Gas Plant and associated facilites for proceeds of $20 million.

The transaction includes the sale of approximately 18% working interest in the Gas Plant and associated facilities, leaving Fairborne a 5% interest in the plant and associated facilities. Under the terms of the agreement Fairborne will have priority access to 75 million cubic feet per day of capacity in the Keyera sour gas system (West Pembina and Brazeau River Gas Plant and associated facilities) and a strategic partner for the infrastructure development of the Harlech lands to the west of the Gas Plant.

This transaction does not include current field gathering and compression facilities in the greater Harlech area.

The proceeds of the transaction will be initially applied against Fairborne's debt, resulting in current estimated net debt of approximately $115 million against the Company's recently affirmed bank lines of $285 million. Based on annualized third quarter cash flow, Fairborne now has a net debt to cash flow ratio of 0.8 times (1.4 times including convertible debentures).

Fairborne is a natural gas and crude oil exploration, development and production company headquartered in Calgary, Alberta, Canada. Its common shares trade on the Toronto Stock Exchange under the symbol "FEL".

Reader Advisory:

This news release contains certain forward-looking statements, which include the use of proceeds from the sale of assets and the effect on net debt. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Such forward-looking statements involve known and unknown uncertainties. Uncertainties include that management or the board of directors may determine to use the proceeds from the sale for a different purpose which would have an effect on net debt. Fairborne's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, that Fairborne will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Fairborne or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Fairborne does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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