FairWest Energy Corporation

FairWest Energy Corporation

April 29, 2013 13:40 ET

FairWest Obtains Extension Under CCAA and Announces Failure to File Annual Financials

CALGARY, ALBERTA--(Marketwired - April 29, 2013) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that it has obtained an Order on April 26, 2013 from the Court of Queen's Bench of Alberta (the "Court") extending the stay of proceedings granted to FairWest under the Companies' Creditors Arrangement Act ("CCAA") to May 31, 2013 (the "April 26 Order").

The April 26 Order also provides for an increase in maximum amount available under the debtor-in-possession financing facility with Supreme Group Inc. to $1,600,000.

FairWest also announces today that it will not be in a position to file its annual financial statements and corresponding management discussion and analysis for the year ended December 31, 2012 (the "Annual Financials"). In anticipation of FairWest's failure to file, FairWest notified each of securities commissions or similar regulators in each of the provinces of Canada in which FairWest is a reporting issuer (the "Commissions"). FairWest does not anticipate being in a position to file the Annual Financials at any time in the future.

The failure to file the Annual Financials may result in the issuance of a cease trade order by the Alberta Securities Commission and the other Commissions prohibiting the trading of all securities of FairWest. A cease trade order, if issued, would remain in effect until such time as FairWest filed its Annual Financials.

FairWest has also advised the TSX Venture Exchange ("TSXV") that it will not be in a position to pay the annual listing fees of the TSXV. Pursuant to the policies of the TSXV, non-payment of annual listing fees will result in the eventual delisting of FairWest common shares from the TSXV.

For more information, interested parties can visit the monitor's website at www.pwc.com/car-fec.

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.

Neither 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.

Contact Information

  • FairWest Energy Corporation
    Douglas O. McNichol
    President and Chief Operating Officer
    (403) 264-4949
    (403) 269-1761 (FAX)

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