Business
Fairmount announces filing of third quarter financial statements and sixth consecutive quarter of production growth.
Fairmount announces filing of third quarter financial statements and sixth consecutive quarter of production growth..
About this update from Fuerte Metals Corporation
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR\n\n\nDISSEMINATION IN THE UNITED STATES OF AMERICA./\n\n\nCALGARY, Feb. 28 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Company") (TSX-V - FMT) is pleased to present a summary of its operating and\nfinancial results for the three and nine months ended December 31, 2006. For a\ncomplete copy of Fairmount's third quarter financial statements and\nmanagement's discussion and analysis ("MD & A"), please visit www.sedar.com.\nCertain information contained in this press release, including development\nplans, drilling locations, and capital expenditures, constitute forward\nlooking statements which are subject to risks and uncertainties. See\n"Forward-Looking Statements".\n\n\nAll amounts are in Canadian dollars unless otherwise noted.\n\n\nHighlights\n\n\nWe are pleased to report our sixth consecutive quarter of production\ngrowth. Average production for the third quarter increased 74% over the third\nquarter of last year to 284 boe/day as compared to 163 boe/day, based on a\nconversion rate of six thousand cubic feet of natural gas to one barrel of\noil.\n\n\nFairmount had a very successful exploration program during the quarter.\nIn particular, 3 successful wells were drilled (0.9 net) at Gold Creek and\n2 successful wells were drilled (1.0 net) at Warner. Test results from the\nwells at Gold Creek indicate a potential to materially increase production and\nwe are currently focused on bringing these wells into production as soon as\npossible.\n\n\nCash flow from operations, while modest, has grown in each of the last\nthree quarters and should continue to increase as we continue to add\nproduction. Fairmount is cautiously optimistic in the recovery of natural gas\nprices, as prices in Alberta have recovered from the lows set in September,\nbut have somewhat stabilized over the last month. Costs of overall services\nare coming off their 2005 - 2006 highs and we should be able to improve upon\nthe cost structure of our operations going forward.\n\n\nFairmount was the operator for most of the activities undertaken this\nquarter. We drilled 6 wells (1.9 net) during the quarter with a success rate\nof 81%. Given the success of the Company's exploration program, the Company\nhas been able to draw the full $2.0 millio...