Business
Fairmount announces strategic review process and corporate update.
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STAT...
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\nDISSEMINATION IN THE UNITED STATES OF AMERICA./\n\n\nCALGARY, Jan. 21 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Company") (TSX-V - FMT) announced today that the Board of Directors has\ninitiated a process to review the Company's business plan and to identify,\nexamine and consider a range of strategic alternatives available to Fairmount\nfor enhancing shareholder value. This may include, among other things,\nexploring a corporate sale or business combination, potential asset\ndivestments, adoption of a dividend policy, making a substantial issuer bid or\nother alternatives to increase shareholder value.\n\n\nIn light of the planned evaluation of strategic alternatives for\nmaximizing shareholder value, the Company wishes to provide the following\noperational and financial update:\n\n\n- The Company continues to have a strong balance sheet, with $6,500,000\n of un-drawn capacity available under the Company's operating demand\n loan facility.\n- Current production has increased to approximately 600 boe/day, with an\n additional 300 boe/day of estimated productive capacity currently\n constrained by facility limitations.\n- The Company has recently drilled and cased 2 (0.8 net) wells with 1\n well (0.3 net) in the Gold Creek Area and 1 well (0.5 net) in the\n Thorsby area. Completion operations on both wells are in progress.\n- The Company does not feel the current market price of its shares\n adequately reflects its net asset value and has been actively\n purchasing and cancelling shares under its normal course issuer bid\n with 633,500 shares purchased since September 30, 2008.\n- Fairmount currently has 16,339,889 shares issued and outstanding.\n\n\nThe Board of Directors has engaged Rundle Energy Partners to act as its\nindependent financial adviser to assist in the conduct of this review.\n\n\nNo decision on any particular alternative has been reached at this time\nand there can be no assurance that the process will result in any change in\nthe Company's current plan to explore and develop its current oil and gas\nproperties or that the Company will pursue any particular transaction or\ncourse of action. Fairmount does not intend to make any further announcements\nregarding the process unless and until its Board of Directors...