Flair Petroleum Corporation

Flair Petroleum Corporation

December 20, 2007 17:39 ET

Flair Petroleum Corporation's President/CEO Addresses Shareholders in Open Letter

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2007) - Flair Petroleum Corporation (PINK SHEETS:FPMC) CEO/President Roland Khalife has issued a letter to the Shareholders reporting on recent developments and restating the Company's mission. The letter in its entirety has been reproduced below.

Dear Fellow Shareholders:

As the year closes, I would like to personally thank our present and future shareholders for putting their faith and trust in the new management team during these past 6 months after you voted to remove all of the former directors (but for me). We have since redefined the company's mission and I would like to take this opportunity to provide you with a view of who we are and the way forward.

Flair Petroleum Corporation ("Flair") is an independent oil and gas company headquartered in Calgary, Alberta engaged primarily in the acquisition of strategic oil and natural gas assets globally with a focus on North America, and our agenda for the near to medium term has been defined by the markets. The energy markets have recently experienced rapid price escalations (crude oil currently above $80 per barrel) directly resulting from a combination of accelerated rising global demand for energy resources as the developing Chinese and Indian economies grow, continuing political instability in the Middle East, and the uncertain investment climate in Russia, and the former Soviet states. Forecasted higher energy prices in the near to medium term have therefore provided the proper incentives for the North American oil majors to invest in the development of the enormous untapped Canadian and US Heavy Oil resources to rebuild their oil and gas reserves base. Flair has therefore been restructured as an investment vehicle, poised to take advantage of the opportunities presented by the changing market fundamentals and the Company enjoys the following comparative advantages:

- Highly qualified management with extensive and worldwide technical and managerial experience in the energy sector.

- Key contacts with market players in the US, Canada and Asia.

- Access to varied sources of funding.

- Know-how in advanced drilling and recovery technologies that have the double impact of increasing the amount of a field's recoverable reserves and its production capacity, both of which will have a significant positive impact on the profitability of the Company's investments.

Having successfully concluded an exclusive option to acquire a 20% working interest in a major California heavy oil project with considerable Oil in Place (one billion barrels) in an area with developed infrastructure of oil pipelines, heavy oil refineries and excellent industry service company support, over these past few months we have been quite busy securing the equity finance required to conclude this important acquisition. Recently we have been granted an extension until January 31, 2008, thereby allowing us to conclude our due diligence exercise, and raise the finance needed to acquire the asset. We are currently unable to provide further details to our shareholders because under the terms of the LOI granting the exclusive option, the negotiations are confidential. However, once the acquisition has been concluded, we will be able to make full disclosure and fully expect our shareholders to be pleased with the results. We are confident this acquisition will be completed by the end of January, 2008.

The delay in completing the audit of the Company's financials has been in large part due to the change in management and the fact that the former CFO left the company and moved to Australia. We have only recently been able to secure the bulk of the Company's records, and are now able to proceed with finalization of the Company's financials. We fully expect them to be completed by the end of January, 2008 at the latest (but for the holiday season this exercise would have been completed in the next two weeks).

Again, I sincerely thank my fellow shareholders for their continued patience, and the confidence you have placed in the new management team. With the end of 2007 we expect to have the issues facing the company finally resolved (and behind us) and the Company will be well positioned to seize the opportunities presented by the dynamic energy markets. Thank you and best wishes for this holiday season.


Roland C. Khalife, President & CEO

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 2007 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.

Contact Information