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CALGARY, Feb. 4 /CNW/ - Pursuant to the previously announced examination of strategic alternatives available to Fairmount Energy Inc. ("Fairmount" or the "Company") (TSX-V - FMT) for enhancing shareholder value, Fairmount announced today that an information package prepared by Fairmount's independent financial adviser (the "Package"), Rundle Energy Partners ("Rundle"), is available on Rundle's website at www.rundleenergy.com and on Fairmount's website at www.fairmountenergy.com.
The Package contains information about Fairmount's existing oil and gas properties as well as pro-forma reserves information as at December 31, 2008. The pro-forma reserves information was prepared by Fairmount's independent reservoir engineering firm, GLJ Petroleum Consultants Ltd. ("GLJ"), based upon their previously prepared NI 51-101 Reserves Report as at March 31, 2008 with mathematical adjustments made to reflect the January 1, 2009 GLJ price forecast, production since March 31, 2008, changes to Alberta royalties under the New Royalty Framework, property dispositions, and the addition or reclassification of reserves as a result of wells drilled since March 31, 2008 in accordance with applicable criteria from the COGE Handbook. Fairmount's NI 51-101 Reserves Data as at March 31, 2008 was filed on Sedar on June 27, 2008 and is available at www.sedar.com.
The Package also identifies potential future drilling locations on Company lands.
Update on strategic alternatives:
No decision on any particular alternative has been reached at this time and there can be no assurance that the process will result in any change in the Company's current plan to explore and develop its current oil and gas properties or that the Company will pursue any particular transaction or course of action. Fairmount does not intend to make any further announcements regarding the process unless and until its Board of Directors has approved a specific transaction or other course of action or otherwise deems disclosure of developments is appropriate.
Parties interested in participating in Fairmount's evaluation of strategic alternatives should contact Rundle Energy Partners directly:
Mark McMurray phone:403 298 9727 email: mmcmurray@rundleenergy.com Bevin Wirzba phone: 403 298 9736 email:bwirzba@rundleenergy.com Chris Poole phone: 403 298 9743 email: cpoole@rundleenergy.com
Forward Looking Information
This news release contains forward looking information relating to the Company's plans to review strategic alternatives for maximizing shareholder. Forward looking information is based on management's expectations regarding future economic conditions, commodity prices, results of operation, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities. Forward-looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations and risks and uncertainties associated with securing financing to proceed with planned capital programs. In addition, the current financial crisis has resulted in severe economic uncertainty and resulting illiquidity in capital markets which increases the risk that actual results will vary from forward looking expectations in this press release and these variations may be material. Readers are cautioned that there can be no assurance that the review of strategic alternatives will result in the announcement or completion of any specific transaction or the adoption of any new policy. Although Fairmount believes that the expectations in such forward-looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward-looking information included in this press release is expressly qualified in their entirety by this cautionary statement. The forward-looking information included in this press release is made as of the date hereof and Fairmount assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.