SOURCE: Ameriwest Energy Corp.
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March 20, 2008 08:00 ET
Ameriwest Energy Signs Exclusive Option to Purchase the Burke Ranch Oil Field, Wyoming
CASPER, WY--(Marketwire - March 20, 2008) - Ameriwest Energy Corp. (OTCBB: AWEC)
("Ameriwest" or the "Company") is pleased to announce that it has entered
into an Exclusive Option to Purchase (the "Option") with Hot Springs
Resources, Ltd., ("Hot Springs") to acquire not less than a working
interest of 95% at a 79.9% net revenue interest within the 1,920 acre Burke
Ranch Unit, plus a working interest of 100% at an 82% net revenue interest
in the 6, 879 acre adjacent leases (outside the Burke Ranch Unit) which
combined are the Area of Mutual Interest ("AMI") located in Natrona County,
Wyoming.
The Burke Ranch field consists of a total AMI of roughly 8,739 acres
situated approximately 25 miles North of Casper, Wyoming located in the
Powder River Basin. Discovered in 1953, the field has been estimated by the
Wyoming Oil and Gas Conservation Commission at 13 million barrels of
original oil in-place and has produced approximately 6.5 MBO using primary
and secondary recovery methods.
Reservoir Engineers, NITEC LLC, of Denver, Colorado, studied the tertiary
recovery potential of the Burke Ranch Field via CO2 injection and estimated
an additional 2.4 MBO as recoverable. Recent geologic studies including
analogous fields within the area have indicated possible and probable
recoverable reserves within the Muddy, Mowry/Niobrara, Frontier and
Tensleep formations. These include the Twenty Mile Hill Field (1.5 MBO
produced from Frontier Formation) and the Lost Dome Field (1 MBO produced
from Tensleep). The producing limits of the Burke Ranch Field have not
been fully established.
As part of the agreement with Hot Springs Resources, Ameriwest plans to
initiate a workover program for the purposes of evaluating and
re-establishing water flood production in the Burke Ranch Unit within 30
days after Closing.
Full details regarding the agreement will be submitted shortly to the
Securities and Exchange Commission ("SEC") as part of the Company's Form
8-K filing regulatory disclosure.
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