CALGARY, ALBERTA--(Marketwire - Nov. 10, 2009) - Fairborne Energy Ltd. ("Fairborne" or the "Company") (TSX:FEL) is pleased to announce that it has closed a transaction to sell a portion of its working interest in the West Pembina Gas Plant and associated facilites for proceeds of $20 million.

The transaction includes the sale of approximately 18% working interest in the Gas Plant and associated facilities, leaving Fairborne a 5% interest in the plant and associated facilities. Under the terms of the agreement Fairborne will have priority access to 75 million cubic feet per day of capacity in the Keyera sour gas system (West Pembina and Brazeau River Gas Plant and associated facilities) and a strategic partner for the infrastructure development of the Harlech lands to the west of the Gas Plant.

This transaction does not include current field gathering and compression facilities in the greater Harlech area.

The proceeds of the transaction will be initially applied against Fairborne's debt, resulting in current estimated net debt of approximately $115 million against the Company's recently affirmed bank lines of $285 million. Based on annualized third quarter cash flow, Fairborne now has a net debt to cash flow ratio of 0.8 times (1.4 times including convertible debentures).

Fairborne is a natural gas and crude oil exploration, development and production company headquartered in Calgary, Alberta, Canada. Its common shares trade on the Toronto Stock Exchange under the symbol "FEL".