FairWest Energy Corporation
TSX VENTURE : FEC

FairWest Energy Corporation

September 30, 2011 09:30 ET

FairWest Energy Announces Increase in Credit Facilities

CALGARY, ALBERTA--(Marketwire - Sept. 30, 2011) - FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that it has obtained an amendment to its demand loan facility (the "Facility") from its principal lender (the "Bank") to increase the maximum limit of the Facility from $3.6 million to $8.0 million. The Facility bears interest at a floating rate of the Bank's prime lending rate plus 2.5% per annum on the first $3.0 million drawn on the Facility and the Bank's prime lending rate on the balance. The Facility is secured by a debenture in the minimum amount of $35.0 million over the Company's assets and a letter of guarantee ("Guarantee") in the amount of $5.0 million from a significant shareholder. The Company will pay the guarantor a one time fee of $150,000 in consideration for providing the Guarantee.

The Company also advises that it issued 6,733,339 common shares pursuant to the conversion of $1,010,000 of Series 2, 14% Secured Subordinated Convertible Redeemable Debentures ("Series 2 Debentures"). To date, the Company has converted $2,084,000 of Series 1, 14% Secured Subordinated Convertible Debentures ("Series 1 Debentures)" and Series 2 Debentures. The Series 1 Debentures and Series 2 Debentures are convertible into common shares of FairWest at $0.15 per common share.

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 there from. 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.

240,856,652 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.

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