/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
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
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.
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
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.
-0- Sep/30/2008 22:17 GMT
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