CALGARY, ALBERTA--(Marketwire - April 1, 2009) -
A correction from source is being issued with respect to the press release issued today at 12:11 AM EST. The figures provided within the Financial Highlights and Operational Highlights have been amended. The corrected version follows:
FairWest Energy Corporation (TSX:FEC) ("FairWest") is pleased to announce its financial and operational results for the year ended December 31, 2008. The following highlights should be read in conjunction with the Management's Discussion and Analysis and the associated Financial Statements for the periods, available at www.sedar.com, on FairWest's website at www.fairwestenergy.com, or by request at the offices of FairWest.
Financial Highlights December 31, 2008 December 31, 2007
($000 except per share amounts) (12 Months) (12 Months)
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Revenue
Petroleum and natural gas sales, net
of royalties 13,208 7,132
Other income 184 130
Gain on settlement of debt 4,237 -
Gain (loss) on disposal of assets 25 (426)
Unrealized gain on financial
contract 109 -
Proceeds on cancellation of contract - 620
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17,763 7,456
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Expenses
General and administrative 1,651 1,806
Stock-based compensation 285 339
Operating 5,160 3,422
Depletion, depreciation and
accretion 20,957 9,845
Interest 1,543 1,228
Part XII.6 tax 104 70
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29,700 16,710
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Loss before income taxes 11,937 9,254
Future income tax recovery 3,061 112
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Net loss and comprehensive loss 8,876 9,142
Funds flow from operations 4,934 1,357
Funds flow from operations ($/share) 0.045 0.014
Capital expenditures 9,679 35,229
Basic loss ($/share) 0.079 0.117
Readers are advised that the consolidated financial statements for the year ended December 31, 2008 have been prepared on a going concern basis which assumes that the Company will be able to recognize its assets and discharge its liabilities in the normal course of business for the foreseeable future. Further information is available in the Management's Discussion and Analysis and Notes to the Financial Statements.
Operations Highlights December 31, 2008 December 31, 2007
(12 Months) (12 Months)
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Natural gas
Natural gas sales ($000) 12,117 1,879
Volume - mcf/day 3,819 2,692
$/mcf 8.67 6.73
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Oil and NGLs
Oil and NGL sales ($000) 3,194 6,670
Volume - bbl/day 98 79
$/bbl 88.80 65.40
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Barrel of oil equivalent
Total sales ($000) 15,311 8,489
Volume - boe/day 735 528
$/boe 56.93 44.10
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Reserves
Net Present Value of Reserves, before
income taxes, discounted at 10% at
December 31, 2008 ($000)
Proved 23,860 23,725
Probable 10,308 21,125
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Proved plus probable 34,168 44,850
Net Present Value of Reserves, before
income taxes, discounted at 10% at
February 28, 2009(1) ($000)
Proved 26,255 23,725
Probable 12,086 21,125
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Proved plus probable 38,340 44,850
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(1) A mechanical update of the December 31, 2008 independent reserve
evaluation has been prepared with a February 28, 2009 effective
date to take into account FairWest's acquisition of a 59% interest
of additional assets in FairWest's Provost core area and the
acquisition of the Lady Freyberg 6-3 well.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
FairWest Energy Corporation
James G. Gettis
President and Chief Executive Officer
(403) 264-4949
(403) 269-1761 (FAX)
FairWest Energy Corporation
Marion D. Mackie
Chief Financial Officer
(403) 264-4949
(403) 269-1761 (FAX)
Website: www.fairwestenergy.com
