Fairmount Announces Increased Production at Gold Creek and Updates Drilling Program.


    CALGARY, Oct. 18 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the
"Company") (TSX-V - FMT) is pleased to announce the tie in of the previously
announced (January 2007) well in the Gold Creek area of Alberta and provide an
update on current production and the status of activities in the Gold Creek

    Fairmount interest at Gold Creek

    The Gold Creek area is located on the southern flank of the Peace River
Arch, near Grande Prairie, Alberta. Fairmount has working interests ranging
from 30% to 66% in 17 contiguous sections of land in the Gold Creek area.
Fairmount is the operator of all of its Gold Creek wells. Based on the results
of the five wells drilled to date on this property, geologic mapping, and/or
3D seismic, Fairmount has identified an additional 8 drilling locations on
existing Company lands.

    Tie in of existing well and increase in production

    In January, 2007, as part of a four well drilling program, Fairmount
successfully completed a multi zone natural gas well in the Gold Creek area.
The well (0.30 net) was completed and tested in two prospective zones. Based
on preliminary testing results, the first zone flowed at a final gas rate of
3.5 mmcf/day and 155 bbls/day condensate for a total of 738 boe/day (gross)
after a 3 day period. The second zone flowed at a final gas rate of 3.0
mmcf/day and 180 bbls/day condensate for a total of 680 boe/day after a 4 day
period. The combined total flow rates during the respective test periods was
6.5 mmcf/day of natural gas and 335 bbls/day of condensate for a total of
approximately 1,400 boe/day (gross).
    Tie in of this well had been delayed pending the acquisition of
sufficient processing capacity. During the summer, Fairmount, along with
partners, entered into an agreement with the current operator of the gathering
and compression facilities to acquire a working interest in the compression
facilities by paying to increase the compression and throughput capability of
the facilities. Fairmount is pleased to announce the completion of the tie in
operations. One of the zones from this well is now on production at a gross
rate of 500 mcf/day and 45 bbls/day of associated liquids. The well is choked
back significantly due to limited capacity available pending completion of the
compression facilities expansion as discussed further below.

    Gold Creek facilities expansion update

    Fairmount is pleased to report the expansion of the compression
facilities at Gold Creek is progressing smoothly and is on schedule for
completion during November. Upon completion of the expansion, Fairmount and
partners will own gathering and compression facilities sufficient to process
12.5 mmcf/day of raw gas from its current and future wells in the Gold Creek
area. Fairmount anticipates bringing onto production an incremental net 300
boe/day once the expansion is complete with approximately 6 mmcf/day (net 2.3
mmcf/day) of additional capacity remaining available for production from new
wells planned in the area.

    Commencement of 3 well fall drilling program at Gold Creek

    Fairmount is pleased to announce commencement of a 3 well (1.0 net)
drilling program at Gold Creek. Leases for two wells (0.70 net) are under
construction and a drilling rig has been contracted with the first well
expected to spud by the end of October. With success, tie in of these wells
into the newly expanded gathering and processing system is anticipated to
require approximately 2 months following completion with production on stream
before spring break up.

    Current production update

    The Company estimates total current production from all areas at
375 boe/day with a further 300 boe/day behind pipe awaiting completion of the
facilities expansion at Gold Creek.

    About Fairmount

    Fairmount is an emerging junior oil and gas exploration, development and
production company with oil and gas properties located in Alberta, Canada.
Additional information regarding Fairmount can be found at their website
www.fairmountenergy.com and on sedar at www.sedar.com.

    Forward - Looking Statements

    This press release contains forward-looking statements, including but not
limited to future exploration and development plans and anticipated production
levels. These statements relate to future events or the Company's future
performance. All statements other than statements of historical fact are
forward-looking statements. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential", "continue", or
the negative of these terms or other comparable terminology. 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. Forward-looking statements are
based on assumptions, including, among other things, the Company's ability to
benefit from the combination of growth opportunities and the ability to grow
through the capital markets; the Company's acquisition strategy, the criteria
to be considered in connection therewith and the benefits to be derived
therefrom; sustainability and growth of production and reserves through
prudent management and acquisitions; the emergence of accretive growth
opportunities; the impact of Canadian governmental regulation on the Company;
the strategy of the Company regarding commodity price risk management, changes
in oil and natural gas prices and the impact of such changes on financial
performance; the level of capital expenditures devoted to development activity
rather than exploration; the use of development activity and/or acquisitions
to replace and add to reserves; the quantity of oil and natural gas reserves
and oil and natural gas production levels; and currency, exchange and interest
    Although the Company believes that the expectations reflected in the
forward-looking statements 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 statements. Some of the risks and other
factors, some of which are beyond the Company's control, which could cause
results to differ materially from those expressed in the forward-looking
statements contained in this press release include, but are not limited to,
general economic conditions in Canada, the United States and globally;
industry conditions, including fluctuations in the price of crude oil, natural
gas and natural gas liquids and services used by the Company; uncertainties
associated with estimating reserves; royalties payable in respect of oil and
gas production; governmental regulation of the oil and gas industry, including
income tax and environmental regulation; fluctuation in foreign exchange or
interest rates; stock market volatility and market valuations; the impact of
environmental events; the need to obtain required approvals from regulatory
authorities; unanticipated operating events which can reduce production or
cause production to be shut-in or delayed; failure to obtain industry partner
and other third party consents and approvals, when required; and third party
performance of obligations under contractual arrangements. Subject to the
company's obligations under applicable securities laws, the Company is not
under any duty to update any of the forward-looking statements after the date
of this press release to conform such statements to actual results or to
changes in the Company's expectations.
    Per barrel of oil equivalent amounts have been calculated using a
conversion rate of six thousand cubic feet of natural gas to one barrel of oil
equivalent (6:1). Barrel of oil equivalents ("boe") may be misleading,
particularly if used in isolation. A boe conversion of ratio 6 mcf:1 bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.

    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 or Ryan A. Michaluk, VP Finance and CFO,
RMichaluk@Fairmountenergy.com; 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 www.fairmountenergy.com

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