FairWest Energy Corporation
TSX VENTURE : FEC

FairWest Energy Corporation

January 26, 2011 09:30 ET

FairWest Energy Announces Farm-Out Agreement in East Central Alberta

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2011) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that it entered into a significant farm-out and option agreement covering a portion of its lands in east central Alberta (the "Agreement") with a public oil and gas company (the "Farmee"). The Agreement also includes an area of mutual interest (the "AMI") for future joint development. 

Under the terms of the Agreement, the Farmee is committed to drill five (5) horizontal wells (the "Test Wells") to evaluate the resource potential of the Viking formation. The Farmee will pay 100% of the costs to drill, complete and equip the Test Wells to earn a 70% working interest in 10 sections of FairWest land. The Agreement provides for a rolling option to allow the Farmee to earn additional lands by drilling horizontal Viking wells. FairWest holds high working interests in approximately 38,000 acres of land within the AMI. FairWest will retain 100% of its interests in all existing wells, production and facilities in the area and will be entitled to 30 percent of the production from all lands earned by the Farmee through drilling. 

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.

READER ADVISORY

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.

192,301,620 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

  • FairWest Energy Corporation
    Vern Fauth
    Chief Executive Officer
    (403) 264-4949
    (403) 269-1761 (FAX)
    vfauth@fairwestenergy.com
    or
    FairWest Energy Corporation
    Douglas O. McNichol
    President and Chief Operating Officer
    (403) 264-4949
    (403) 269-1761 (FAX)
    dmcnichol@fairwestenergy.com
    or
    FairWest Energy Corporation
    Marion D. Mackie
    Chief Financial Officer
    (403) 264-4949
    (403) 269-1761 (FAX)
    mmackie@fairwestenergy.com