FairWest Energy Obtains Initial Order Under CCAA

FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC)
announces that it has obtained an Initial Order on December 12, 2012 from the
Court of Queen's Bench of Alberta (the "Court") granting relief to FairWest
under the Companies' Creditors Arrangement Act ("CCAA") and appointing
PricewaterhouseCoopers Inc. as the monitor (the "Monitor"). The terms and
conditions of a restructuring plan have not yet been determined. 


The Initial Order provides that the operations of FairWest may continue as usual
and that FairWest management will remain responsible for the day to day
operations of FairWest. The Initial Order further provides that from and after
the filing date, obligations to employees, consultants, agents, experts,
accountants, counsel and other such persons can be met in the ordinary course
and all reasonable expenses incurred by FairWest in carrying out its business in
the ordinary course can be paid. 


In conjunction with this application, the Company obtained authorization and
approval to enter into a commitment letter with Supreme Group Inc. (the "DIP
Lender") for the provision of debtor-in-possession financing in the maximum
amount of $700,000 and a court ordered charge ranking senior in priority to
existing security interests to secure the Company's obligations to the DIP
Lender under such financing. 


While FairWest is under CCAA protection, all proceedings against it by its
creditors are stayed. The Initial Order grants FairWest creditor protection
under the CCAA for an initial period which expires on January 11, 2013. The
Monitor will monitor the property, business and financial services of FairWest
pursuant to the CCAA.  


About FairWest Energy 

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas
company engaged in the acquisition, exploration, development and production of
crude oil, natural gas and natural gas liquids in the provinces of Alberta and
Saskatchewan.


READER ADVISORY

This news release may contain certain forward-looking statements, including, but
not limited to, management's assessment of future plans and operations and the
Company's default under the Series 1 and Series 2 Debentures. Such statements
involve substantial known and unknown risks and uncertainties, certain of which
are beyond the Company's control. Such risks and uncertainties include, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling rigs and other services, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations (including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the final
valuations thereof and obtaining required approvals of regulatory authorities.
The Company's actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if any
of them do so, what benefits, including the amount of proceeds, that the Company
will derive therefrom. Readers are cautioned that the foregoing list of factors
is not exhaustive. All subsequent forward-looking statements, whether written or
oral, attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the
forward-looking statements contained in this news release are made as at the
date of this news release and the Company does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.


319,654,775 Common Shares Issued

FOR FURTHER INFORMATION PLEASE CONTACT: 
FairWest Energy Corporation
Vern Fauth
Chief Executive Officer
[phone]
[phone] (FAX)
[e-mail]


FairWest Energy Corporation
Douglas O. McNichol
President and Chief Operating Officer
[phone]
[phone] (FAX)
[e-mail]


FairWest Energy Corporation
Marion D. Mackie
Chief Financial Officer
[phone]
[phone] (FAX)
[e-mail]