CALGARY, ALBERTA--(Marketwire - Dec. 12, 2012) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that it has obtained an Initial Order on December 12, 2012 from the Court of Queen's Bench of Alberta (the "Court") granting relief to FairWest under the Companies' Creditors Arrangement Act ("CCAA") and appointing PricewaterhouseCoopers Inc. as the monitor (the "Monitor"). The terms and conditions of a restructuring plan have not yet been determined.
The Initial Order provides that the operations of FairWest may continue as usual and that FairWest management will remain responsible for the day to day operations of FairWest. The Initial Order further provides that from and after the filing date, obligations to employees, consultants, agents, experts, accountants, counsel and other such persons can be met in the ordinary course and all reasonable expenses incurred by FairWest in carrying out its business in the ordinary course can be paid.
In conjunction with this application, the Company obtained authorization and approval to enter into a commitment letter with Supreme Group Inc. (the "DIP Lender") for the provision of debtor-in-possession financing in the maximum amount of $700,000 and a court ordered charge ranking senior in priority to existing security interests to secure the Company's obligations to the DIP Lender under such financing.
While FairWest is under CCAA protection, all proceedings against it by its creditors are stayed. The Initial Order grants FairWest creditor protection under the CCAA for an initial period which expires on January 11, 2013. The Monitor will monitor the property, business and financial services of FairWest pursuant to the CCAA.
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, but not limited to, management's assessment of future plans and operations and the Company's default under the Series 1 and Series 2 Debentures. Such statements 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.
319,654,775 Common Shares Issued
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