CALGARY, ALBERTA--(Marketwire - June 29, 2009) - On June 4, 2009 FairWest Energy Corporation (the "Company") (TSX:FEC) announced the Company had entered into a Forbearance Agreement (the "Agreement") with its Lender at May 31, 2009. As the demand loan has been reduced from $12.2 million to $9.25 million at June 15, 2009 the Lender has extended the term of the Agreement to July 31, 2009 to allow the Company time to complete the planned financings.
The following table sets out the Company's progress in the implementation of the Plan at June 25, 2009.
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Planned Completed %
$M $M Complete
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Source of Working Capital
Asset Sales
AltaEast Production Limited Partnership and 4.425 2.50 56
Strategic Production Limited Partnership(1) 4.425 0 0
AltaEast Land Fund Limited Partnership 1.00 - 0
Equity Sales
Flow Through Share Offering at $.10/share 2.00 0.70 35
Financing Costs (0.12) (0.04) 35
Hedge Sale
Hedge Sale 0.75 0.71 100
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12.48 4.05 32
Use of Working Capital
Reduction of Credit Facilities 5.30 2.95 56
Reduction of Unsecured Debt 7.18 - 0
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12.48 2.95 24
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(1) The asset sale planned has been separated into two transactions.
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.
FairWest 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
