FairWest Energy Corporation

FairWest Energy Corporation

May 12, 2011 09:30 ET

FairWest Energy Announces Amended Year End Financial Results

CALGARY, ALBERTA--(Marketwire - May 12, 2011) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that on May 11, 2011, the Board of Directors of the Company approved amendments to the year end financial statements as previously filed on SEDAR on April 29, 2011. These amendments resulted from a change to the ceiling test calculation which arose following the filing of the year end financial statements. As a result of the recalculation, the ceiling test impairment which was previously recorded at $4.2 million was increased to $7.7 million. The effect of this on the 2010 year end financial statements was to increase the depreciation, depletion and accretion expense by $3.5 million, increase loss before income taxes by $3.5 million, increase net loss and comprehensive loss by $3.5 million, increase basic and diluted loss per share by $0.024, decrease property and equipment by $3.5 million and increase the deficit by $3.5 million. The adjustment did not change working capital, cash flows or future income tax provisions.

The Company has filed the amended Audited Financial Statements and Management's Discussion and Analysis ("Financials") for the year ended December 31, 2010 on SEDAR. The full text of the Financials can be found at www.sedar.com and on the Company's website at www.fairwestenergy.com.

About FairWest Energy

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.


This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof and obtaining required approvals of regulatory authorities. The Company'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 so, what benefits, including the amount of proceeds, that the Company 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 the Company 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 the Company 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.

225,669,291 Common Shares Issued

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information