FNR Energy Limited Partnership Announces Dedication of Proceeds to Saskatchewan Drill Programs

SASKATOON, SK, Nov. 14, 2011 /CNW/ - Partnership (the "Partnership") is pleased to announce that it has committed substantially all of the available funds raised in its initial public offering. The funds have, or will be, deployed to 3 drilling programs with private operators in Saskatchewan, as follows:

  • Southeast Saskatchewan - 2 wells, 1 Allida and 1Tilston (results pending);
  • Southeast Saskatchewan - 3 Frobisher wells, first well completed and on production with initial production in excess of 200 BOE (results pending for remaining 2 wells); and
  • Kindersley Viking Formation in Southwest Saskatchewan - 5 wells completed and on production (initial production results pending).

The Partnership's investment objective is to provide limited partners with: (i) income through distributions of distributable cash; (ii) potential capital appreciation in the assets of the Partnership and potential liquidity through the sale or roll-over of assets; and (iii) certain tax assistance in the form of deductions by participating in the development and production of, and to a lesser extent, the exploration for oil and natural gas. The Partnership intends to achieve these objectives by investing certain proceeds of the offering in flow-through shares of one or more wholly-owned subsidiary companies formed for the sole purpose of entering into joint venture agreements with oil and gas issuers in order to participate directly, within the joint ventures, in oil and/or natural gas production and/or exploration programs in target areas.

Additional information about the Partnership is available at www.sedar.com.

Forward Looking Information: This release contains forward-looking information within the meaning of applicable Canadian securities legislation, including statements respecting discovered and undiscovered oil and natural gas resources. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. In addition, the forward-looking information contained in this release is based upon what management believes to be reasonable assumptions. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, the Partnership assumes no obligation to update or revise such information to reflect new events or circumstances.

Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas has been converted at a ratio of six thousand cubic feet to one boe. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe's may be misleading, particularly if used in isolation. References to natural gas liquids ("liquids") include condensate, propane, butane and ethane and one barrel of liquids is considered to be equivalent to one boe.

SOURCE FNR Energy Limited Partnership

For further information:

FNR Energy Inc., as general partner of FNR Energy Limited Partnership
Richard Wingate
President and Chief Executive Officer
306-373-3700 or rwingate@fnrm.ca

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FNR Energy Limited Partnership

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