SOURCE: Ameriwest Energy Corp.

July 07, 2008 09:00 ET

Ameriwest Energy Announces Shannon Formation Reservoir Evaluation at Cole Creek Oilfield

CASPER, WY--(Marketwire - July 7, 2008) - Ameriwest Energy Corp. (OTCBB: AWEC) ("Ameriwest" or the "Company") wishes to announce that NITEC, LLC ("NITEC") has submitted a reservoir evaluation which estimates that under a CO2 continuous, miscible flood the Shannon Formation of the Cole Creek oilfield could potentially yield an additional 4.20 MMSTB of oil.

As previously noted in a Company press release dated June 13, 2008, Ameriwest has the exclusive option to purchase a 35% working interest in the Second Frontier, Dakota and Lakota Formations of the Cole Creek Field which NITEC estimates an incremental 14.468 million gross standard barrels of oil (MMSTB) may be recoverable via additional primary, secondary and tertiary recovery from within those formations. Furthermore, Ameriwest has an exclusive option to purchase a 68% working interest in the Shannon Formation, also within the Cole Creek field. Based on the results of NITEC's recently submitted evaluation, Ameriwest's interest in the Shannon Formation could result in a net position of approximately 3.0 MMSTB of oil to the Company.

Ameriwest commissioned NITEC, LLC to evaluate earlier studies undertaken by MOBIL Oil plus a subsequent study by an independent geologist undertaken as recently as 2001. Their assessment specific to the Shannon Formation incorporates the previous data as well as providing a complete evaluation resulting in the following findings in their report:

1. The Original Oil in Place (OOIP) estimates for the Shannon Formation in
   the Cole Creek Field range from 23.0 MMSTB to 40.0 MMSTB, with a most
   likely value of 30.0 MMSTB.
2. As of December 31, 2007, the cumulative oil production and the remaining
   OIP in the Shannon were estimated to be 9.25 MMSTB and 20.75 MMSTB,
   respectively.
3. The ultimate primary and secondary recoveries estimated from historical
   data analysis and analogs are 5.96 MMSTB (19.9%) and 3.42 MMSTB (11.4%),
   respectively.
4. A CO2 continuous, miscible flood of the Shannon Formation is estimated
   to yield an additional recovery of 4.20 MMSTB (14.0%). This estimation
   was based on limited analog information.

The OOIP estimates were based on volumetric calculations and material balance estimations. The volumetric and the material balance results are consistent; however, it is recommended to validate these calculations with a numerical simulation model where the pressure data is locally matched at each well's location.

Company President Walter Merschat states, "We are pleased to announce these additional findings from NITEC. The supplementary data supports our preliminary assessments and increases the overall potential net revenue to the Company. Now that we have a significant evaluation of all target formations in-hand, we intend to carefully consider the findings and rapidly incorporate this information into our operational planning."

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 affiliates 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