Business
Fairmount announces the sale of non-core Harmattan and Crossfield properties
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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\nDISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\nCALGARY, Aug. 22 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Company") (TSX-V - FMT) is pleased to announce the sale of its working\ninterests in the Harmattan and Crossfield areas of Alberta for aggregate gross\nproceeds of $14,250,000. The Company's share of production from these\nproperties was approximately 210 barrels of oil equivalent per day.\n\n\nHarmattan Property Sale\n\n\nFairmount has entered into a letter agreement with a major Canadian\nenergy trust to sell its non-operated working interest of approximately 8% in\n47 wells in the Harmattan area for cash proceeds of $12,000,000 before closing\nadjustments. The sale has an effective date of August 1, 2008, is subject to\nthe execution of a definitive agreement and customary due diligence\nprocedures, and is anticipated to close in mid-September.\n\n\nCrossfield Property Sale\n\n\nIn a separate transaction, on August 14, 2008 the Company completed the\nsale of its interests in the Crossfield area effective June 1, 2008 to a major\nCanadian energy trust for $2,250,000 before closing adjustments.\n\n\nAbout Fairmount\n\n\nThe sale of the Harmattan and Crossfield properties represents completion\nof Fairmount's full cycle business model with respect to these two properties.\nOver the past four years, Fairmount participated in the drilling and the\nconstruction of infrastructure to bring these properties onto production and\ncreate reserve value. The exploration and development opportunity for these\nproperties was fulfilled and their reserve value confirmed through production\nhistory. As mature long life producing assets, these assets no longer fit with\nthe Company's high growth business model. The sale of these properties allows\nFairmount to extinguish current borrowings under its operating line of credit\nin the short term and redeploy this capital for exploration and development\nopportunities in the Company's higher growth focus areas.\n\n\nFairmount is an emerging junior oil and gas exploration, development and\nproduction company with oil and gas properties located in Alberta, Canada.\nFairmount trades on the TSX Venture Exchange as FMT and currently has\n17,184,389 common shares outstanding.\n\n\nAdditional in...