FairWest Energy Corporation
TSX VENTURE : FEC

FairWest Energy Corporation

February 17, 2012 18:26 ET

FairWest Energy Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2012) - FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that its principal lender has granted the Company an extension to February 24, 2012 to pay back all amounts outstanding on its demand loan facility ("Facility"). The Company is in the final stage of discussions with a new lender and expects to have a new credit facility in place to pay out the Facility on or before February 24, 2012.

FairWest is pleased to provide an update on its horizontal Mannville oil well at Berry Creek, Alberta. The FairWest 02 HZ Stanmore 16-3-28-12 W4M well was cased and rig released on January 19, 2012. The horizontal section in the well was drilled approximately 600 metres in length and encountered 325 metres of hydrocarbon pay. The well was recently completed with fracture stimulation in 10 intervals. Preliminary completion results have confirmed the well is capable of flowing light crude oil and natural gas in commercial quantities. The well is presently shut in to measure the initial pressure of the reservoir and surface equipment is expected to be in place next week to enable an extended production test. The Company is conducting preliminary work on two additional horizontal drilling locations to further delineate this light oil resource play.

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.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations and the Company's credit facility 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 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.

276,815,693 Common Shares Issued

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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