SOURCE: Ameriwest Energy Corp.

February 25, 2008 08:00 ET

Ameriwest Energy Receives Geochemical Evaluation of Skull Valley Prospect

CASPER, WY--(Marketwire - February 25, 2008) - Ameriwest Energy Corp. (OTCBB: AWEC) ("Ameriwest" or the "Company") is pleased to announce that it has received a surface geochemical prospect evaluation from Exploration Technologies, Inc. (ETI) of Houston, TX regarding the Skull Valley Prospect in Tooele County, Utah where Ameriwest has a signed Letter of Intent to acquire a 100% working interest (80% net royalty interest) for leases encompassing over 5000 acres of prospect lands with the stated intent to sign a definitive agreement within the next few weeks.

Ameriwest contracted with ETI to provide an evaluation of the surface geochemical prospect of the Skull Valley Prospect. ETI's proven techniques and technology produce a graphic, geochemical picture of the source rock and these petroleum exploration surface geochemical surveys can be used to map the light hydrocarbons expressed through microseeps from active petroleum and natural gas reservoirs at depth. The maps, developed from the survey, serve as a guide to identifying prospective areas in both frontier and mature basins. The information provided under the heading "Prospect Evaluation" is extracted from the independent Surface Geochemical Prospect Evaluation report prepared by ETI.

Prospect Evaluation

According to the report submitted by ETI, the prospect was first identified by geochemical surveying, conducted by the Gulf Oil Company in the 1970s. Soil gas data and contour maps from this report show that the geochemical anomalies mapped in Skull Valley are similar in composition and magnitude to those anomalies found over and adjacent to Grant Canyon field, and to the other commercial oil fields that lie within the Great Basin and Range Province.

The Grant Canyon oil field located approximately 125 miles southwest of the Skull Valley Prospect in Nye County, Nevada has been considered a type model for future oil and gas production from the Paleozoic rock formations in the eastern portion of the Great Basin and Range Province and as a model for the Skull Valley Prospect. The Grant Canyon field has produced over 20 million barrels of oil since 1983 and may ultimately produce a total of 30 million barrels.

ETI's evaluation identifies that the similarities between the structural style (slump blocks), geologic column (reservoir rocks), and geochemical anomaly between the Grant Canyon field and the Skull Valley Prospect suggest that with almost 5000 leased acres (over 2000 acres in the heart of the geochemical anomaly) a 25 million to 35 million barrel potential is a realistic possibility. Simply put, since the geology and geochemistry are so similar, ETI stated similar volumes of oil could be expected. Moreover, the geochemical anomaly at Skull Valley may have greater potential than the Grant Canyon field, because of the additional potential reservoirs in the Mississippian carbonates, perhaps even 50 million to 100 million barrels may be possible. The proximity of this prospect to Salt Lake City also enhances the potential profit from this field by decreased service and trucking costs.

Surface soil gas surveys conducted by ETI have demonstrated that the Grant Canyon field, and all of the producing fields in Railroad and Pine Valleys of Nevada, has well defined, near surface soil gas anomalies. Soil gas anomalies consisting of ethane and propane are typically associated with oil reservoirs while soil gas anomalies consisting of only methane are associated with bio-gases. The geochemical anomalies identified in Skull Valley, which contain propane and ethane, are similar in magnitude and composition to all of the other Nevada oil fields, and even exhibit compositions greater than the Grant Canyon field.

Exploration Technologies, Inc. was founded in 1984 by Victor T. Jones, Ph.D., an internationally recognized leader in geochemistry and former Director of Geochemical Application for Gulf Research and Development Co. (Gulf Oil Co.). The company's geochemical techniques are employed in the petroleum industry to reduce exploration risk. ETI's staff of geoscientists has extensive experience in the research, development, execution and interpretation of various geochemical techniques utilized in petroleum exploration. For more information regarding ETI, please visit their website at: www.eti-geochemistry.com.

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. Forward-looking statements in this news release include that a 25 million to 35 million barrel potential is a realistic possibility in the Skull Valley Prospect; since the geology and geochemistry between the Grant Canyon field and the Skull Valley Prospect are similar, similar volumes of oil could be expected; the geochemical anomaly at Skull Valley may have greater potential than the Grant Canyon field, perhaps even 50 million to 100 million barrels being possible; proximity of the Skull Valley Prospect to Salt Lake City decreases service and trucking costs thus enhancing potential profit.

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