FairWest Energy Corporation

FairWest Energy Corporation

December 05, 2007 17:00 ET

FairWest Energy Corporation Announces Financial Outlook Update

CALGARY, ALBERTA--(Marketwire - Dec. 5, 2007) - FairWest Energy Corporation (TSX:FEC) ("FairWest") is pleased to provide an update to its November 14, 2007 financial outlook and its plans to reduce its overall working capital deficiency to $14.0 million plus $2.0 million of 14% secured convertible debentures ("Debentures") by December 31, 2007. FairWest's financing plans involve the following activities:

1. Subject to regulatory approval, FairWest has received commitments to purchase 6,500,000 flow-through common shares for proceeds of $1,462,500.

2. FairWest has closed the sale of $675,000 of Debentures. FairWest has received commitments to purchase the balance of $1,325,000 of Debentures and expects to close prior to December 7, 2007. The term of the Debentures will be two years, and will pay interest on a monthly basis. Each $1,000 Debenture may be converted into 2,222 common shares of FairWest (0.45 per common share).

3. The closing of the sale of FairWest's interest in a net smelter return royalty ("NSR Royalty") in the Benso property in Ghana, Africa has been extended to December 7, 2007. The proceeds of $US1,875,000 are currently being held in escrow and the proceeds, after approximately $US75,000 of legal fees, will be released at closing.

4. FairWest is negotiating the sale of $5.0 million of oil and gas properties.

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)
    FairWest Energy Corporation
    Marion D. Mackie
    Chief Financial Officer
    (403) 264-4949
    (403) 269-1761 (FAX)