Agoracom: Small Cap Investment - Fairborne Energy Ltd - NR purchase add'l land leases Marlborne area...new big debt $200b

Welcome To The Fairborne Energy HUB On AGORACOM

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Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

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Have a great Sunday, especially those of you like me that are celebrating Orthodox Easter ... As well as those of you who are also like me and mourning another Maple Leafs Game 7 exit ... Ugggh!

Sincerely,

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duncanmcl

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NR purchase add'l land leases Marlborne area...new big debt $200b

posted on Jul 29, 2010 12:04PM

FAIRBORNE ENERGY MAKES STRATEGIC LAND AND FACILITIES ACQUISITION

ON GROWING WILRICH GAS PLAY

Fairborne Energy Ltd. ("Fairborne" or the "Company") (TSX:FEL

) is pleased to announce that it has
entered into an agreement to purchase a significant land position with producing assets and facilities (the

“Assets”) in the Company’s core Marlboro/Pine Creek area. The acquisition will have an effective date of

July 1, 2010 and is expected to close on or about September 9, 2010 for a cash purchase price, at closing, of

approximately $71.5 million, subject to closing adjustments. The completion of the transaction is subject to

customary regulatory approvals and other conditions. The acquisition will be funded through Fairborne’s

existing credit facility.

Transaction Highlights:

The Assets to be acquired by Fairborne doubles the Company’s position in a significant new gas play and

exploration trend in the Company’s core Marlboro/Pine Creek area of West Central Alberta.

The acquisition has the following assets and attributes:

•

167 gross sections (91.4 net sections) of land, which includes 71.8 net sections of undeveloped
Wilrich rights;

•

Significant development opportunities on the Assets with an identified inventory of more than 200
potential Wilrich horizontal locations on the acquired lands;

•

Over 30 potential gross Notikewin/Falher horizontal locations;

•

Significant number of vertical locations with multi zone potential;

•

More than 100 workover locations in various reservoirs identified in existing well bores;

•

Strategic infrastructure including over 150 km of operated pipelines and a 55.1% working interest in
a 14 MMcf/d (licensed to 42 MMcf/d) gas plant;

•

Reserves estimated by GLJ Petroleum Consultants Ltd., effective as of June 30, 2010, of 2.7 MMboe
total proved and 5.1 MMboe total proved plus probable; and

•

Current production of approximately 980 boe/d of mature, shallow decline production (83% gas).

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