<< /NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/ >> CALGARY, Sept. 30 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the "Company") (TSX-V - FMT) is pleased to announce it has closed the previously announced sale of its working interests in the Harmattan area of Alberta to Pengrowth Energy Trust for aggregate gross proceeds of $12,000,000 before closing adjustments. About Fairmount The sale of the Harmattan property represents completion of Fairmount's full cycle business model with respect to this property. Over the past four years, Fairmount participated in the drilling and the construction of infrastructure to bring this property onto production and create reserve value. The exploration and development opportunity for this property was fulfilled and its reserve value confirmed through production history. As a mature long life producing asset, this property no longer fit with the Company's high growth business model. Proceeds from the sale of this property will allow Fairmount to pay down borrowings under its operating line of credit and free up liquidity to fund exploration and development opportunities in the Company's higher growth focus areas. Fairmount is an emerging junior oil and gas exploration, development and production company with oil and gas properties located in Alberta, Canada. Fairmount trades on the TSX Venture Exchange as FMT and currently has 16,973,389 common shares outstanding. Additional information regarding Fairmount can be found at their website www.fairmountenergy.com and on Sedar at www.sedar.com. Forward-Looking Information This news release contains forward-looking information, including but not limited to future exploration and development plans. This information relates to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking information. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. The Company can not guarantee future results, levels of activity, performance, or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking information. Subject to the company's obligations under applicable securities laws, the Company is not under any duty to update any of the forward-looking information after the date of this news release to conform such information to actual results or to changes in the Company's expectations. << The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. >> For further information: Joseph S. Durante, President and CEO, JDurante@Fairmountenergy.com, Phone (403) 355-0440; Or Ryan A. Michaluk, VP Finance and CFO, RMichaluk@Fairmountenergy.com, Phone (403) 350-0440; Fairmount Energy Inc., 2200, 520 - 5th Avenue SW, Calgary, Alberta, T2P 3R7, Phone: (403) 355-0440, Fax: (403) 355-0465; Visit us at our website www.fairmountenergy.com CO: Fairmount Energy Inc. ST: Alberta NI: OIL -0- Sep/30/2008 22:17 GMT
Fairmount closes sale of non-core Harmattan property
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