FairWest Energy Corporation

FairWest Energy Corporation

November 28, 2011 09:00 ET

FairWest Energy Announces Third Quarter Financial Results and Corporate Update

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that the Company has filed its Unaudited Financial Statements and Management's Discussion and Analysis ("Financials") for the three and nine months ended September 30, 2011 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.

The Company's two major farmout agreements at Kirkpatrick Lake and Provost have yielded positive results in the Viking oil resource play. At Kirkpatrick Lake four horizontal wells have been drilled, completed and placed on production. The Farmee has experienced operational problems on two of the four wells completed. A workover is currently being conducted on one of the wells that to date, has not been capable of production and the other well is producing at uneconomic rates. The remaining two wells are producing at a combined rate of 60 boe/d (60% gas) with the Company's share at 18 boe/d. Inflow rates are encouraging for these wells. A fifth horizontal well was drilled and cased and the completion of this well is pending.

At Provost three horizontal Viking oil wells have been drilled, cased and completed. Two of the wells were on production in September 2011, with the third expected to be tied in during December 2011. The first two wells are producing at a combined rate of 83 boe/d (55% oil) with the Company's share at 27 boe/d. Completion results for the third well were very encouraging with flowing test rates of 60 bbl/d oil and 1 MMcf/d of natural gas (225 boe/d combined). The Farmee has indicated they would be interested in drilling three joint development wells by the end of the first quarter of 2012 (the Company will be a 32% participant). The Company has identified numerous drilling locations within its land base including development locations to follow up on successful drilling at Provost and Kirkpatrick Lake.

The Company has focused on oil projects in 2011 to capture the higher netbacks from oil. At September 30, 2011, the Company was approximately 75% weighted in gas production, but anticipates being closer to 70% gas, 30% oil by year end as new oil production comes on stream. For the three months ended September 30, 2011, revenue from oil and natural gas liquids represented 58% of total petroleum and natural gas revenue even though it only accounted for 25% of total volumes. Current production is approximately 380 boe/d. Production increases are expected from the Kirkpatrick Lake and Provost farmout wells in December 2011.

The Company also advises that in October 2011, it issued 1,413,334 common shares pursuant to the conversion of $212,000 of Series 2, 14% Secured Subordinated Convertible Redeemable Debentures ("Series 2 Debentures"). To date, the Company has converted $2,571,000 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.

FairWest returned all of the common shares held by Olympia Trust Company as Agent for Fairstar Explorations Inc. ("Fairstar") shareholders ("Agent") to treasury. Upon the amalgamation of Fairstar and Western Energy Corporation to form FairWest on August 18, 2005 (the "Effective Date"), Fairstar shareholders were required submit their Fairstar share certificate for conversion to FairWest Shares on or before the sixth anniversary of the Effective Date. On August 18, 2011 and October 26, 2011, 195,979 common shares and 1,957 common shares, respectively, were returned to treasury.

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 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. 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.

244,101,363 Common Shares Issued

READER ADVISORY: 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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