FairWest Energy Corporation

FairWest Energy Corporation

April 06, 2006 16:29 ET

FairWest Energy Corporation Announces Acquisition at Burstall, Saskatchewan and Provides Update on Flow Through Share Offering

CALGARY, ALBERTA--(CCNMatthews - April 6, 2006) -

Acquisition at Burstall, Saskatchewan

FairWest Energy Corporation (TSX:FEC) ("FairWest") is pleased to announce the acquisition of an 80% working interest in 18 sections of land in Burstall, Saskatchewan for consideration of $1,048,935. The acquisition includes 50 shallow gas wells and a 1,000 mscf/day gas plant. Producing and prospective horizons include the Milk River, Medicine Hat and Viking formations. Immediately adjacent to the acquired lands, FairWest holds an average working interest of 9.2% in 340 producing wells and an extensive gathering and compression system that connects the wells to third party processing facilities.

Burstall is one of FairWest's four core areas. Management is very pleased that FairWest will be the operator of the acquired properties. As operator at Burstall, FairWest will be in control of production optimization opportunities. During 2005, FairWest did not operate any of its properties. FairWest's goal is to be the operator of all of its core areas.

Private Placement

On March 31, 2006 FairWest issued 759,210 Flow Through Common shares for a total consideration of $455,526.40. FairWest intends to offer up to 1,666,667 flow-through common shares at $0.60 per flow-through common share. The $1,000,000 raised will be expended on FairWest's exploration and drilling program during 2006. The private placement will close on or prior to April 30, 2006.

Odd-Lot Selling Program

On or before April 11, 2006, information on FairWests's Odd-Lot Selling Program will be mailed to eligible shareholders, specifically those shareholders who own less than 500 common shares of FairWest. Further information is available at www.fairwestenergy.com or by contacting Olympia Trust Company, FairWest's registrar and transfer agent.

FairWest Energy Corporation is a Calgary, Alberta based company engaged in the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta and Saskatchewan.

Contact Information

  • FairWest Energy Corporation
    James G. Gettis
    President and Chief Executive Officer
    (403) 264-4949 or (514) 695-8080
    FairWest Energy Corporation
    Marion D. Mackie
    Chief Financial Officer
    (403) 264-4949 or (514) 695-8080
    FairWest Energy Corporation
    Larry Nachshen
    Chairman of the Board
    (403) 264-4949 or (514) 695-8080
    (403) 269-1761 or (514) 695-8011 (FAX)