News out!
CALGARY, ALBERTA--(Marketwire - Aug. 3, 2011) - FairWest Energy Corporation (TSX VENTURE:
FEC -
News; "FairWest" or the "Company") is pleased to announce initial drilling results under its previously announced farm-out and option agreement (the "Agreement") in the Provost area of Alberta. The first two (2) horizontal wells (the "Test Wells") drilled under the terms of the Agreement have been completed as horizontal Viking oil wells. The operator of the wells, Verity Energy Ltd. ("Verity") is presently equipping the wells and constructing facilities for a projected on stream date of August 15, 2011. Based on preliminary completion results the wells are expected to initially produce at an average rate of approximately 75 Bbls/d of oil and 150 Mcf/d of natural gas each for a combined oil equivalent rate of 100 Boe/d each. FairWest is entitled to 32% of the production from the wells.
Under the terms of the Agreement, Verity pays 100% of the costs to drill, complete and equip the Test Wells to earn a 60% interest in up to 3.5 sections of FairWest lands. The Agreement allows Verity to earn the remaining lands by drilling one (1) additional horizontal option well. Verity has advised that it will be proceeding with the drilling of the option well on FairWest lands. This well is planned to be drilled during the fourth quarter of 2011. As well, Verity has indicated that it plans to drill an additional three wells in the area prior to the end of the first quarter of 2012.
About FairWest Energy
FairWest (TSX VENTURE:FEC - News) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.
READER ADVISORY
This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The terms bbls, bbls/d, boe or boe/d may be misleading, particularly if used in isolation. A boe (barrel of oil equivalent) conversion ratio of 6 mcf per one (1) boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
231,919,291 Common Shares Issued
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.