Navigate this market better. Subscribe for FREE stock alerts and information.

Thursday, March 15, 2012

Canada's Fairborne says may put itself up for sale, (TSE: FEL.TO)

Canadian oil and gas explorer Fairborne Energy Ltd said it may put itself up for sale as it explores strategic options to increase shareholder value, with other alternatives including a merger, recapitalisation and the selling of assets.Fairborne, which sold some natural gas assets last year to reduce debt, said it believes the company's shares are undervalued given its assets."(The)shares trade at a significant discount to the value of the underlying assets, especially given its high-quality Wilrich gas, high netback Sinclair oil, recently announced condensate rich Cardium wells and associated inventory at Harlech and approximately $550 million in tax pools," the company said in a statement.Fairborne said its board has established a special committee comprised of independent directors to oversee the strategic review process. It has not yet set a definite schedule to complete the evaluation.

Fairborne Energy Ltd. (Fairborne) is an exploration and production company. Shares of FEL fell by 2.11% or $-0.05/share to $2.32. In the past year, the shares have traded as low as $2.27 and as high as $5.53. On average, 303761 shares of FEL.TO exchange hands on a given day and today's volume is recorded at 44855.