New West Energy Services Inc.
TSX VENTURE : NWE

November 28, 2008 16:59 ET

New West Energy Services Inc. Announces Update on Acquisition of Terralog Technologies Inc.

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

New West Energy Services Inc. (TSX VENTURE:NWE) ("New West" or the "Corporation") announces its previously announced proposed acquisition of Terralog Technologies Inc. ("TTI") (the "Acquisition") has been postponed. The Acquisition, which includes TTI acquiring sole ownership of its subsidiary, PT Terralog Teknologi Indonesia, was approved by the Corporation's shareholders at its annual and special meeting on October 27, 2008. However, due to market conditions, the Corporation has not been able to complete the $6.6 million private placement of common shares of New West prior to November 28, 2008, completion of which financing is a condition precedent to closing of the Acquisition. New West and TTI are currently negotiating an extension to the financing and the Acquisition and will issue a follow-up press release once the terms of such new agreement have been agreed upon, or in the event the proposed transaction is terminated.

The proposed transaction remains subject to certain other conditions, including receipt of all required regulatory approvals.

About TTI and PT TTI

TTI is a private company with its head office located in Calgary, Alberta. It is a leading international service company that specializes in petroleum geomechanics and deep well disposal waste management using slurry fracture injection technology. PT TTI, has its head office in Jakarta, Indonesia.

TTI has been in operation for approximately 8 years. It has gained international prominence working through PT TTI for the past 4 years in connection with a long term contract disposing of production wastes at the Dun oilfield in Sumatra, Indonesia.

TTI is also currently working under contract in Bergen, Norway providing technical and engineering support for 5 offshore CR1 disposal wells in the North Sea.

TTI has made significant business development inroads with other international concerns that TTI anticipates will start field operations in the future. While these projects are in various stages of discussions, it must be noted that final approvals have not yet been given for these projects, and operating agreements have not been negotiated for these projects.

In addition, TTI is involved in the development of Carbon Capture and Storage CO2 technology.

About New West

New West operates in the oil field service industry in Canada. New West sells chemicals and provides engineering services to oil and gas exploration and production companies.

On behalf of the Board of Directors of New West Energy Services Inc.

Joseph Scarlett, Director

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should', "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. These forward- looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside New West's control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to, statements regarding the proposed Acquisition, including expected combined financial and operating results; the expected amount and timing of operating synergies; whether and when the transactions contemplated by the Agreement will be consummated; and expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by New West and described in the forward-looking information contained in this press release. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are the failure to realize anticipated synergies; the result of the review of the proposed Acquisition by various regulatory agencies and any conditions imposed in connection with consummation of the proposed Acquisition; failure to receive the approval of the proposed Acquisition by the shareholders of New West and satisfaction of various other conditions to the closing of the Acquisition contemplated by the Agreement. Readers are cautioned not to place undue reliance on such forward-looking information. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits New West will derive therefrom.

Additional Information

The Information Circular prepared in connection with the Acquisition can be reviewed on New West's SEDAR profile at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • New West Energy Services Inc.
    Richard J Collens
    Chief Financial Officer
    (403) 303-2665
    (403) 263-7558 (FAX)
    Email: dcollens@newwestdf.com