FairWest Energy Corporation
TSX : FEC

FairWest Energy Corporation

December 13, 2007 17:29 ET

FairWest Energy Closes Sale of Benso Royalty and Private Placement of 6,500,000 Flow Through Common Shares

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2007) - FairWest Energy Corporation ("FairWest") (TSX:FEC) has closed and received the proceeds of the previously announced sale of its 1.5% interest in a net smelter return on the Benso Concession, Ghana ("NSR") for $1.875 million US. The NSR was a gold mining asset held by Fairstar Explorations Inc. ("Fairstar") prior to the amalgamation of Western Energy Corporation and Fairstar to form FairWest.

FairWest has also closed the private placement of 6,500,000 Flow Through Common shares ("FT Shares") for total consideration of $1,462,500.

The above closings, together with existing credit lines with Canadian financial institutions, are sufficient to finance FairWest's working capital requirements.

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

Statements in this release which describe FairWest's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of FairWest to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. FairWest may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

Contact Information

  • FairWest Energy Corporation
    James G. Gettis
    President and Chief Executive Officer
    (403) 264-4949
    (403) 269-1761 (FAX)
    or
    FairWest Energy Corporation
    Marion D. Mackie
    Chief Financial Officer
    (403) 264-4949
    (403) 269-1761 (FAX)