CALGARY, Dec. 5 /CNW/ - FairWest Energy Corporation (TSX:FEC)
("FairWest") is pleased to provide an update to its November 14, 2007
financial outlook and its plans to reduce its overall working capital
deficiency to $14.0 million plus $2.0 million of 14% secured convertible
debentures ("Debentures") by December 31, 2007. FairWest's financing plans
involve the following activities:
1. Subject to regulatory approval, FairWest has received commitments to
purchase 6,500,000 flow-through common shares for proceeds of $1,462,500.
2. FairWest has closed the sale of $675,000 of Debentures. FairWest has
received commitments to purchase the balance of $1,325,000 of Debentures
and expects to close prior to December 7, 2007. The term of the
Debentures will be two years, and will pay interest on a monthly basis.
Each $1,000 Debenture may be converted into 2,222 common shares of
FairWest (0.45 per common share).
3. The closing of the sale of FairWest's interest in a net smelter return
royalty ("NSR Royalty") in the Benso property in Ghana, Africa has been
extended to December 7, 2007. The proceeds of $US1,875,000 are currently
being held in escrow and the proceeds, after approximately $US75,000 of
legal fees, will be released at closing.
4. FairWest is negotiating the sale of $5.0 million of oil and gas
FairWest (TSX:FEC) is a Calgary, Alberta based junior oil and gas company
engaged in the acquisition, exploration, development and production of crude
oil and natural gas in the provinces of Alberta and Saskatchewan.
Statements in this release which describe FairWest's intentions,
expectations or predictions, or which relate to matters that are not
historical facts are forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties which may cause
the actual results, performances or achievements of FairWest to be materially
different from any future results, performances or achievements expressed in
or implied by such forward-looking statements. FairWest may update or revise
any forward-looking statements, whether as a result of new information, future
events or changing market and business conditions.
For further information:
For further information: James G. Gettis, President and Chief Executive
Officer, FairWest Energy Corporation, (403) 264-4949, (403) 269-1761 (FAX);
Marion D. Mackie, Chief Financial Officer, FairWest Energy Corporation, (403)
264-4949, (403) 269-1761 (FAX)