Business
Fairmount announces increased production and increased bank lines
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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. 19 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Company") (TSX-V - FMT) is pleased to provide the following updates.\n\n\nCurrent production update\n\n\nThe Company estimates total current production from all areas at\napproximately 635 boe/day with a further 145 boe/day behind pipe awaiting\ncompletion of tie in operations in Gold Creek.\n\n\nGold Creek Facilities Expansion Complete - Increased production at Gold\n\n\nCreek\n\n\nThe previously announced expansion of the compression facilities at Gold\nCreek is now complete and running resulting in Fairmount and its partners\nowning gathering and compression facilities sufficient to process\n12.5 mmcf/day of raw gas from its current and future wells in the Gold Creek\narea.\n\n\nThe completion of the facility expansion will allow Fairmount to increase\nproduction at Gold Creek by 420 boe/day (net) to bring total production at\nGold Creek to approximately 550 boe/day (net) by the end of February.\n\n\nGold Creek Drilling Program Update\n\n\nThe Gold Creek area is located on the southern flank of the Peace River\nArch, near Grande Prairie, Alberta. Fairmount has working interests ranging\nfrom 30% to 84% in 13.75 contiguous sections of land in the Gold Creek area.\nFairmount is the operator of all of its existing Gold Creek wells. Based on\nthe results of the seven wells drilled to date on this property, geologic\nmapping, and/or 3D seismic, Fairmount has identified an additional six\ndrilling locations on existing Company lands.\n\n\nFairmount commenced a 3 well (1.0 net) drilling program at Gold Creek in\nNovember 2007. To date, two wells have been drilled with one well (0.50 net)\nbeing dry and abandoned and one well (0.30 net) being successfully completed\nin three different zones. The successful well tested at a combined flow rate\nof 900 mcf/day plus 60 bbl/day of natural gas liquids. Construction of the tie\nin for this well is underway with production anticipated by the end of\nFebruary.\n\n\nThe Company is not the operator of the third well planned for this\nprogram but it is anticipated the well will be drilled during March 2008.\n\n\nNew area exploration success\n\n\nFairmount is pleased to report it h...