/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Sept. 30 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the
"Company") (TSX-V - FMT) is pleased to announce it has closed the previously
announced sale of its working interests in the Harmattan area of Alberta to
Pengrowth Energy Trust for aggregate gross proceeds of $12,000,000 before
The sale of the Harmattan property represents completion of Fairmount's
full cycle business model with respect to this property. Over the past four
years, Fairmount participated in the drilling and the construction of
infrastructure to bring this property onto production and create reserve
value. The exploration and development opportunity for this property was
fulfilled and its reserve value confirmed through production history. As a
mature long life producing asset, this property no longer fit with the
Company's high growth business model. Proceeds from the sale of this property
will allow Fairmount to pay down borrowings under its operating line of credit
and free up liquidity to fund exploration and development opportunities in the
Company's higher growth focus areas.
Fairmount is an emerging junior oil and gas exploration, development and
production company with oil and gas properties located in Alberta, Canada.
Fairmount trades on the TSX Venture Exchange as FMT and currently has
16,973,389 common shares outstanding.
Additional information regarding Fairmount can be found at their website
www.fairmountenergy.com and on Sedar at www.sedar.com.
This news release contains forward-looking information, including but not
limited to future exploration and development plans. This information relates
to future events or the Company's future performance. All statements other
than statements of historical fact are forward-looking information. By its
nature, forward-looking information involves numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur.
Although the Company believes that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance that
such expectations will prove to be correct. The Company can not guarantee
future results, levels of activity, performance, or achievements. Moreover,
neither the Company nor any other person assumes responsibility for the
accuracy and completeness of the forward-looking information. Subject to the
company's obligations under applicable securities laws, the Company is not
under any duty to update any of the forward-looking information after the date
of this news release to conform such information to actual results or to
changes in the Company's expectations.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Joseph S. Durante, President and CEO,
JDurante@Fairmountenergy.com, Phone (403) 355-0440; Or Ryan A. Michaluk, VP
Finance and CFO, RMichaluk@Fairmountenergy.com, Phone (403) 350-0440;
Fairmount Energy Inc., 2200, 520 - 5th Avenue SW, Calgary, Alberta, T2P 3R7,
Phone: (403) 355-0440, Fax: (403) 355-0465; Visit us at our website