MegaWest Energy Corp.
OTC Bulletin Board : MGWSF

MegaWest Energy Corp.

January 17, 2008 00:00 ET

MegaWest Energy Files Amended Annual Financials

CALGARY, ALBERTA--(Marketwire - Jan. 16, 2008) - MegaWest Energy Corp., (the "Company" or "MegaWest") (OTCBB:MGWSF), an independent oil and gas company (Cusip: #585168 107), specializing in non-conventional oil and gas projects with a focus on North American heavy oil, today announced that it has filed amended and re-stated annual financial statements for the years ended April 30, 2007 and 2006 to include a re-stated note for the additional disclosures required under US Generally Accepted Accounting Principles ("GAAP"). The Company's financial position and results, as previously reported under Canadian GAAP, have not changed.

The Company has re-stated its 2007 additional disclosures required under US GAAP to record the net assets acquired from the related parties at the exchange amount and to reflect the exchange shares issued on an acquisition as temporary equity. The effect on the consolidated balance sheet prepared in accordance with US GAAP for the restatements is to increase the oil and gas assets by $23,307,691 with a corresponding increase to shareholders' equity. The net loss for the year ended April 30, 2007 prepared in accordance with US GAAP remained unchanged. A complete description of the US GAAP reconciliation can be found in "Note 19" to the annual financial statements.

MegaWest owns or has the right to earn an interest in over 115,000 acres in Missouri, Kansas, Kentucky, Texas and Montana. MegaWest's strategy is to grow shareholder value through the selective acquisition of projects with large resource potential located in the vicinity of existing infrastructure and the application of emerging and proven commercial developments in thermal recovery technologies. Delineation drilling and the completion of thermal and enhanced recovery production demonstration projects may increase the value of the unconventional heavy oil resources in each of its core areas.

ON BEHALF OF THE BOARD OF DIRECTORS

F. George Orr, Chief Financial Officer

For further information please visit the Company's Website at www.megawestenergy.com.

Forward-Looking Statement Disclaimer

This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the actual presence or recoverability of estimated oil and gas resources, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and on Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. MegaWest Energy undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. Readers should also refer to MegaWest Energy's current annual report or other document filings, which are available at www.sedar.com and at www.sec.gov for additional discussion of risks and uncertainties. The reader is cautioned not to place undue reliance on forward-looking statements.

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