Flair Petroleum Corporation
PINK SHEETS : FPMC

Flair Petroleum Corporation

October 24, 2006 17:12 ET

Flair Petroleum Corporation Provides Update on its Heavy Oil Developments

CALGARY, ALBERTA--(CCNMatthews - Oct. 24, 2006) - Flair Petroleum Corporation (PINK SHEETS:FPMC) reports that it will not be proceeding with the acquisition and development of the heavy oil projects known as MegaWest in Edwards County, Texas, Deerfield in Missouri, and Chetopa in Kansas. Flair was a party to Letters of Intent ("LOIs") permitting the Company to conduct a full technical, legal and economic due diligence of the projects. The initial $700,000 deposit monies advanced to enter into the LOI's will be returned in full as per the terms of the agreements.

Other heavy oil projects in the US have been made available to Flair which have been deemed to be more attractive due to their reduced technical risk and due to the fact that a higher ownership interest can be earned or acquired in these projects by Flair. These new projects are heavy oil projects located in Texas and Utah where Flair is in the process of entering into definitive agreements and as soon as these commitments are finalized the details will be disclosed. Furthermore, these new projects are likely better suited for extraction utilising RadCan Energy Services' radial drilling technology (see www.radialdrilling.com) to which Flair has a preferential right of usage. It is estimated that these new projects could produce a higher level of daily production once peak production is achieved than the previously evaluated projects.

This news release includes forward-looking statements that reflect Flair Petroleum Corporation's current expectations about its future results, performance, prospects and opportunities. Flair Petroleum Corporation has tried to identify these forward-looking statements by using words and phrases such as "may", "will", "expects", "anticipates", "believes", "intends", "estimates", "should", "typical", "we are confident" or similar expressions. These forward- looking statements are based on information currently available to Flair Petroleum Corporation and are subject to a number of risks, uncertainties and other factors that could cause the corporation's actual results, performance, prospects of opportunities in the remainder of 2006 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.

Contact Information

  • Flair Petroleum Corporation
    Larry Podrasky
    Chief Financial Officer
    (403) 399-9498