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CALGARY, June 27 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the "Company") (TSX-V - FMT) is pleased to announce it has renewed its revolving operating demand loan with a Canadian chartered bank providing an increased line for up to $10,000,000 in funds for general corporate purposes, including capital expenditures.
In addition to the operating demand loan, Fairmount has also renewed with the same Canadian chartered bank, an increase in its non-revolving acquisition and development demand loan for up to $4,000,000. This facility is available to Fairmount for the acquisition of producing petroleum and natural gas reserves and/or the development of proved non-producing or undeveloped petroleum and natural gas reserves. Based on prior engineering review, $3,150,000 of this facility has been made available to the Company for immediate drawdown.
Security for the loans includes a General Assignment of Book Debts and floating charge over all of the assets of the Company with the bank having the option to receive fixed charges on producing properties upon request. Both loans are subject to an interim review by October 1, 2007 and an annual review by August 31, 2008.
Fairmount is an emerging junior oil and gas exploration, development and production company with oil and gas properties located in Alberta, Canada. Additional information regarding Fairmount can be found at their website www.fairmountenergy.com and on sedar at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.