Fairborne Energy Ltd.
TSX : FEL

Fairborne Energy Ltd.

March 15, 2011 17:11 ET

Fairborne Energy Ltd.: Third Party Outage at Marlboro

CALGARY, ALBERTA--(Marketwire - March 15, 2011) - Fairborne Energy Ltd. ("Fairborne" or the "Company") (TSX:FEL) provides the following information with regards to production outage at its Marlboro Property.

On March 10, the Company was informed by SemCAMS (the Operator of the K3 Gas Plant and Gathering System) that a significant mechanical failure had occurred at the K3 gas plant. The K3 gas plant was completely shut down and Fairborne was required to shut in 100 percent of its Marlboro production being transported and processed at K3. The Company was also informed that production from its non-operated Tower Creek Leduc well (23% WI) was also shut in.

This failure has resulted in Fairborne's operated production from the Marlboro property (approximately 3,800 boe per day net sales) and its volumes from Tower Creek (350 boe per day net sales) being temporarily shut in until the plant is repaired and brought back on line. It is currently estimated that this will take approximately two weeks and SemCAMS has informed Fairborne that production is scheduled to recommence on or about March 22nd.

As previously released (February 22, 2011), after reaching record production from the Marlboro property in December of 2010, Fairborne was informed by SemCAMS that its production would be restricted due to limitations in the gathering system for the K3 gas plant.

To date, the Company has built a behind pipe inventory of approximately 1,700 boe per day net sales from the successful first quarter drilling program and existing restricted volumes. There still remains one operated (48% WI) and one non-operated (35% WI) well to be drilled before spring breakup at Marlboro. Production volumes from the drilling program and previously restricted volumes will commence production with the commissioning of the Fairborne owned and operated Marboro Gas Plant.

Construction of the 40 million cubic feet per day capacity Marlboro Gas Plant (Fairborne working interest 82%) is on track for a late April startup. The facility will have the capacity to handle all of Fairborne's growing Marlboro volumes.

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

Forward-Looking Statements

Certain information set forth in this press release, contain forward-looking statements including management's assessment of future plans and operations, drilling plans, timing of recommencement of production from Marlboro, impact of compressor failure on 2011 annual average production, plans for expansion and construction a new gas facility at Marlboro and its capacity and effect and timing of completion of new facility. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Fairborne's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Fairborne's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Fairborne's website (www.fairborne-energy.com). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Fairborne could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Fairborne will derive therefrom. Fairborne disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Barrels of Oil Equivalency

Natural gas volumes are converted to barrels of oil equivalent (boe) on the basis of 6,000 cubic feet (mcf) of gas for 1 barrel (bbl) of oil. The term "barrels of oil equivalent" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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