Business
Fairmount announces substantial increase in oil and gas reserves
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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, June 2 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Company") (TSX-V - FMT) is pleased to announce a 43% increase in the before\nincome tax value of Proved plus Probable oil and natural gas reserves as\ndetermined by GLJ Petroleum Consultants Ltd. ("GLJ") as at March 31, 2008.\nFairmount has received its updated independent reserve evaluation report,\ncompliant with National Instrument 51-101 ("NI 51-101") and the Canadian Oil\nand Gas Evaluation Handbook ("COGEH") from GLJ. Under NI 51-101 and COGEH,\nProved reserve assignments are based on a 90 percent probability that total\nquantities recovered will equal or exceed Proved reserve estimates. Proved\nplus Probable reserves are the most likely case and are based on a 50 percent\nprobability that the quantities actually recovered will equal or exceed the\nsum of Proved plus Probable estimates. The reserves committee of Fairmount's\nboard of directors, which is made up of a majority of independent directors,\nmet with GLJ representatives and has reviewed the independent evaluator's\nreserves report. Summary information is presented below. Additional\ndisclosure, in accordance with NI 51-101, will be provided in the company's NI\n51-101 filings at a later date.\n\n\nCertain information contained in this press release, including reserve\nestimations and related future net revenues, constitute forward looking\ninformation which are subject to risks and uncertainties. See "Forward -\nLooking Information".\n\n\nHighlights\n\n\n- Before tax present value of Gross Proved plus Probable reserves\n discounted at 10% increased 43% from $29,658,000 at March 31, 2007 to\n $42,373,000 at March 31, 2008.\n- Gross Proved plus Probable reserves increased 25% from 2,052,000 boe\n at March 31, 2007 to 2,562,000 boe at March 31, 2008.\n- Before tax present value of Gross Proved reserves discounted at 10%\n increased 22% from $21,931,000 at March 31, 2007 to $26,707,000 at\n March 31, 2008.\n- Gross Proved reserves increased 16% from 1,293,000 boe at March 31,\n 2007 to 1,495,000 boe at March 31, 2008.\n\n\nAs at March 31, 2008, Fairmount had 17,243,889 common shares outstanding\nand stock options...