Fairborne Announces Initiation of Strategic ReviewFairborne Energy Ltd.
TSX : FEL
![Fairborne Energy Ltd.](https://www.ccnmatthews.com/logos/20080909-fel_logo.jpg)
March 15, 2012 00:06 ET
Fairborne Announces Initiation of Strategic Review Process
CALGARY, ALBERTA--(Marketwire - March 15, 2012) - Fairborne Energy Ltd. (TSX:FEL) ("Fairborne" or the "Company") announces that its Board of Directors has initiated a process to identify, examine and consider strategic alternatives with the view to enhancing shareholder value. Strategic alternatives may include, but are not limited to, sale of the corporation, merger or other business combination, recapitalization, sale of all or a portion of the Company's assets, or any combination thereof, continued execution as its business plan, among all other alternatives.
The Board of Directors believes that the Company's shares trade at a significant discount to the value of the underlying assets, especially given its high-quality Wilrich gas, high netback Sinclair oil, recently announced condensate rich Cardium wells and associated inventory at Harlech and approximately $550 million in tax pools.
In connection therewith, the Board of Directors has established a special committee comprised of independent directors to oversee the process and which intends to retain a financial advisor to assist the Special Committee and the Board of Directors with this process.
It is the Company's current intention not to disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. The Company has not yet set a definite schedule to complete its evaluation or process.