FairWest Energy Corporation

FairWest Energy Corporation

November 26, 2010 13:47 ET

FairWest Energy Announces Third Quarter Financial Results and Corporate Update

CALGARY, ALBERTA--(Marketwire - Nov. 26, 2010) - FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that the Company has filed its Unaudited Financial Statements and Management's Discussion and Analysis ("Financials") for the nine months ended September 30, 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.

Private Placement Financing

FairWest also announces that subject to regulatory and TSX Venture Exchange ("TSXV") approval, it intends to issue by way of private placement up to 43,000,000 flow-through Common Shares at $0.07 per share for proceeds of up to $3,010,000. The Company may pay finders fees of up to 10% of the offering to eligible dealers. The funds from this private placement will be used for exploratory drilling and seismic surveys on FairWest properties during 2010 and 2011.

Operational Update

As a result of restricted capital investment and asset sales, the Company's production decreased to an average of 380 Boe/d during the third quarter of 2010. A well optimization and workover program commenced by the Company in the third quarter resulted in increased production to approximately 450 Boe/d. Further production gains are expected as a result of additional optimization work and new drilling prior to the end of December 2010. The Company revised its year-end 2010 exit rate target to approximately 625 Boe/d from 900 Boe/d to coincide with the timing of its field operations. Interested parties are invited to refer to additional operational information located in FairWest's Financials. 

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.

The terms bbls, bbls/d, boe or boe/d may be misleading, particularly if used in isolation. A boe (barrel of oil equivalent) conversion ratio of 6 mcf per one (1) boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

173,197,332 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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