SOURCE: Ameriwest Energy Corp.

June 13, 2008 20:36 ET

Ameriwest Energy Announces Preliminary Findings of Reservoir Evaluation at Cole Creek Oilfield

CASPER, WY--(Marketwire - June 13, 2008) - Ameriwest Energy Corp. (OTCBB: AWEC) ("Ameriwest" or the "Company") is pleased to announce that NITEC, LLC ("NITEC") has determined that an incremental 14.468 million gross standard barrels of oil (MMSTB) may be recoverable from additional primary, secondary and tertiary recovery efforts in the Second Frontier, Dakota and Lakota Formations within the Cole Creek field.

As previously announced on April 21, 2008, Ameriwest commissioned NITEC of Denver to evaluate earlier studies undertaken by MOBIL Oil plus a subsequent study by an independent geologist undertaken as recently as 2001. Their assessment incorporates that data as well as a complete evaluation resulting in the following findings in their report:

1. The Original Oil in Place (OOIP) estimates for the Second Frontier, Dakota, and Lakota Formations in the Cole Creek Field are 15.0 MMSTB, 22.6 MMSTB and 10.5 MMSTB, respectively.

2. Remaining Oil in Place as of December 2007 was estimated to be 14.7 MMSTB, 14.8 MMSTB, and 9.8 MMSTB for the Second Frontier, Dakota, and Lakota Formations, respectively.

3. The ultimate expected primary recoveries which assume further development of the three formations in the field are estimated to be 1.50 MMSTB (10.0%), 4.46 MMSTB (19.7%), and 1.58 MMSTB (15.0%) for the Second Frontier, Dakota, and Lakota formations, respectively.

4. The ultimate expected secondary recoveries which assume further secondary development of the South compartment in the Dakota Formation, and full implementation of water flooding in the Second Frontier, the North compartment in Dakota, and Lakota are estimated to be 0.30 MMSTB (2.0%), 5.18 MMSTB (22.9%), and 1.58 MMSTB (15.0%) for the Second Frontier, Dakota, and Lakota formations, respectively.

5. The ultimate recoveries under CO2 continuous, miscible flooding are estimated to be 18.0% in the Second Frontier, Dakota, and Lakota formations; 2.70 MMSTB, 4.07 MMSTB, and 1.89 MMSTB, respectively.

The OOIP estimates were based on volumetric calculations and material balance estimations. NITEC determined that the volumetric and the material balance results are consistent, adding certainty to these evaluations.

Ameriwest has the exclusive option to purchase a 35% working interest in all the above listed formations and 68% working interest in the Shannon Formation within the Cole Creek field. NITEC is currently evaluating the Shannon Formation and the Company expects this evaluation to be completed within the next three weeks.

Company President Walter Merschat comments, "We are very pleased by the positive report from NITEC. The information is invaluable to us and supports the earlier studies and data. With this evaluation in hand, we now have a significant and up-to-date resource to utilize as we move forward with our plans to exploit this asset. We will be studying the report carefully and we hope to announce our plans in regards to our next steps within the next few weeks."

About Ameriwest Energy Corp. (OTCBB: AWEC)

Ameriwest Energy Corp. is a growing, expertly managed energy company focused on producing underdeveloped oil resources in the prolific Rocky Mountain region of the United States. The company is striking a strategic balance between low-risk tertiary recovery projects and extensively mapped exploration plays with significant upside potential. Visit our website at www.ameriwestenergy.com.

Notice Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding development and exploration activities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Ameriwest to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Ameriwest Energy Corp., or any affiliate, has little or no control. Risks, uncertainties and other factors are discussed in documents filed from time to time by Ameriwest with the Securities Exchange Commission. There is no assurance that Ameriwest's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. Information concerning oil reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

On Behalf of the Board

Ameriwest Energy Corp.
Walter R. Merschat, President

Contact Information

  • Investor Relations Contact
    Great Northwest Investor Relations, Inc.
    1-888-697-4712
    Visit our website at www.ameriwestenergy.com