CALGARY, ALBERTA, Jun. 4, 2010 (Marketwire) -- FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that the Company completed its fully subscribed offering of $5.5 million (the "Private Placement") of Series 2, 14% Secured, Subordinated, Convertible Debentures (the "Debentures"). The Company previously reported that it had accepted subscriptions for $3,768,000 and subsequently accepted a further $1,732,000 on May 31, 2010. The Company does not plan to issue any additional Series 2 Debentures. Each Debenture is priced at $1,000, bears interest at a rate of 14% per annum and is convertible into Common Shares at a price of $0.15 per share until March 31, 2012. The proceeds from the sale of Debentures are being used to reduce secured and unsecured debt of the Company and for oil and gas well optimization.
The Company also advises that subject to regulatory and TSX Venture Exchange ("TSXV") approval, it is proceeding with a private placement of $1 million comprised of 10,000,000 common shares at $0.10 per share. The funds from this private placement will be applied to reduce trade creditor debt. Subject to board of director, regulatory and TSXV approvals, the Company plans to issue additional equity of up to $2 million in a private placement which will be priced and completed following closing of the $1 million private placement.
The Company also advises that as previously announced, it has now paid and issued $180,000 cash, 6,510,057 Common Shares and 551,571 Common Share Purchase Warrants (the "Warrants") to certain unsecured creditors of the Company (the "Creditors") representing an aggregate of $831,000 of trade debt pursuant to a proposal to the Creditors. The deemed price of the Common Shares issued in the proposal is $0.10 per share and the Warrants are exercisable into Common Shares at a price of $0.15 per share until September 30, 2012.
The Company also announces that it will be holding its Annual and Special Shareholder Meeting at 10:00 AM on Wednesday, June 23, 2010 at the Metropolitan Convention Centre, Calgary, Alberta.
About FairWest Energy
FairWest (TSX VENTURE:FEC) 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.
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 therefrom. 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.
136,349,936 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.