BUSINESS
06/08/2011 11:11 EDT | Updated 08/08/2011 05:12 EDT

FairWest Energy: Farmout Deals Result In Alberta Drilling

CP

THE CANADIAN PRESS -- CALGARY - FairWest Energy Corporation (TSXV:FEC) says companies that struck farmout deals with the Calgary junior energy producer have begun drilling horizontal wells on FairWest lands in the Provost area of east central Alberta.

The horizontal wells are being drilled to evaluate the resource potential of the Viking oil formation, FairWest said Wednesday.

In the first farmout agreement, the company acquiring the option committed to drill five horizontal wells by August 31, with an option for further wells.

In the second farmout agreement, the farmee company will drill two horizontal wells by the end of June, with an option on another well.

In another matter, FairWest closed a Mannville oil acquisition for $350,000 in the Berry Creek area of Alberta.