FairWest to Add Acreage in Core Area
FairWest Energy Corp. on Tuesday announced its proposed acquisition of additional assets in Provost, Antelope, and Berry Creek, Alberta (the "Assets") for consideration of $4.4 million. The anticipated closing date is July 31, 2007.
The Assets include 28 wells with varying working interests, an extensive 3D seismic program, and a 55% interest in an oil battery. Projected 2007 production from these properties is 72 barrels per day of oil and 400 thousand cubic feet per day of natural gas for a total of 139 barrels of oil equivalent per day (Boe/d). The cost of this added production is $31,655 per flowing Boe/d and $18.00 per barrel of oil equivalent using proved plus probable reserves based on a qualified independent engineering report.
This acquisition will increase FairWest's existing ownership interests in lands within three of the Company's Alberta core areas. FairWest believes that there is significant potential to increase production from the acquired properties through well enhancements, bringing a number of shut-in wells back into production, and drilling at least two development wells that have been identified following a review of the 3D seismic on the undeveloped lands.
FairWest is a Calgary-based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil and natural gas in the provinces of Alberta and Saskatchewan.
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