SOURCE: Ameriwest Energy Corp.

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

Contact Information

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