Fair Sky Resources Inc.
TSX VENTURE : FSK

Fair Sky Resources Inc.

December 18, 2006 14:09 ET

Fair Sky Resources Inc. Announces December Operations, Appointment of Officers and Related Matters

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) -

(NOT INTENDED FOR DISSEMINATION IN THE UNITED STATES):

Fair Sky Resources Inc. ("Fair Sky") (TSX VENTURE:FSK) reports that the first well of the 2006-2007 winter drilling program in the Carbondale area has been cased and tested as a successful gas well with 6.5 meters of Ellerslie pay. The well (100% WI) was flow tested on a 7.94 mm choke at more than 1,500mcf/d at a pressure of 4900 kPa. Pipelining has commenced and the well is expected to be tied in and on production by the end of December 2006. A second well at Carbondale has been drilled and cased and will be tested before year end.

Fair Sky and its partner have also commenced construction of a pipeline to tie in the successful exploration well announced earlier at Boundary Lake. This well tested at a flow rate of 5,230 mcf/d. Production is expected to commence late in the first quarter of 2007. Fair Sky holds a 60% WI in this well, subject to a 12 % GORR.

On Fair Sky's Moose Jaw property consisting of more than 100 sections, Faire Sky has drilled and cased the first well of a 4 well program (100% WI) to be drilled before January 2007. A previous well had been drilled and cased on this play in March of 2006 and therefore two wells have now been drilled and cased on this second white specks natural gas play and are awaiting completion. Fair Sky is optimistic that both these wells will be successfully completed as natural gas producers based on positive log analysis and an increase in gas detection through the 2nd white specks zone. A completion program is expected to commence in early 2007 once the last three wells of this program have been drilled.

Fair Sky is also pleased to announce the appointment of Mr. Kirk Wankel to the position of Chief Financial Officer and Brad Bates to the position of Manager Engineering. Mr. Wankel holds a Bachelor of Commerce degree from the University of Calgary and has experience as an auditor and he served as the Vice President Finance for a large international safety supply company. Mr. Bates holds a B.Sc. in chemical engineering from Lakehead University and has extensive experience in Production and Operation Engineering focused on sustained growth and property management with proficiency in production optimization and completions. In connection with the appointment of these officers, Fair Sky granted stock options to acquire up to 75,000 common shares of Fair Sky at an exercise price of $2.08 vesting in equal amounts on the first, second and third anniversaries of the grant and exercisable for up to 5 years.

Certain information in this news release, including management's assessment of future plans and operations, number of locations in drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, costs, timing and other matters, may constitute forward-looking statements under applicable securities laws. Such forward looking statements necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, wells not performing as expected. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Fair Sky's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website at www.sedar.com . The forward-looking statements contained in this news release are made as at the date of this news release and Fair Sky 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.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fair Sky Resources Inc.
    Tim Kemp
    President, CEO
    (403) 264-5337
    or
    Fair Sky Resources Inc.
    Jasmine Smith
    Sr. Manager, Investor Relations
    Email: ir@fairskyresources.com