CanWest Petroleum Corporation

CanWest Petroleum Corporation

March 29, 2005 13:42 ET

Canwest Petroleum Corporation: Progress Report



OTC Bulletin Board SYMBOL: CWPC

MARCH 29, 2005 - 13:42 ET

Canwest Petroleum Corporation: Progress Report

CALGARY, ALBERTA--(CCNMatthews - March 29, 2005) - CanWest Petroleum
Corporation (OTCBB:CWPC) -


The 2005 exploration and drilling program on the 1.4 million acre (60
townships) Firebag East lands is ready to start. Oilsands Quest Inc. has
secured a truck mounted coring rig as well as a 16 person mobile trailer
camp. The exploration program which is expected to include a minimum of
20 exploration wells during 2005, will begin on the western portion of
the Saskatchewan permits, closest to proven reserves on the Alberta side
and close to two previously drilled wells with good bitumen shows.
Depending on initial drill core results, the program may then continue
in a north-south pattern to intersect east-west paleo channels
containing bitumen. A subsequent pattern of wells will be drilled to the
east to find the eastern extent of bitumen deposition. The 2005 work
program is subject to Saskatchewan Government approval.

Oilsands Quest Inc., a subsidiary of the Company, will be featured in
Oil Week during early April.

Christopher Hopkins, Oilsands Quest's CEO, was a founding officer of
Synenco Energy Inc. and led the exploration program that ultimately
identified a resource base of 1.5 billion barrels oil, with the
potential of another billion barrels, all located within two townships
and situated to the west of Firebag East. Over the course of five years
Synenco raised $40 million Canadian in equity largely due to Mr. Hopkins
efforts and became one of the lowest cost discoveries in the industry,
at a cost of approximately 2 cents per barrel found. Its current
resource base is capable of producing 100,000 barrels oil per day with a
mine life of over 30 years.


Ensign Drilling has spudded the 5-3-38-3 W5M well and is currently
drilling at 1,250 feet. Surface casing will be run to 930 feet. The rig
is known as a telescopic double and is rated to drill to 10,000 feet in
depth. Drilling operations are expected to be suspended for a few weeks
as a result of restrictions on heavy vehicles using secondary highways
and roads during spring breakup. This road ban is an annual event, which
occurs in most of Central and Northern Canada when the frost, which may
be several feet thick, melts allowing the ground to dry. Drilling
operations for a large rig such as that on the Sylvan Lake well requires
service by heavy vehicles such as mud, water, cement and vacuum trucks
which may cause severe road damage.

The Sylvan Lake Prospect is a well defined 3-D seismic structural high
within a preserved Pekisko remnant "island" that may have virgin
reservoirs with similar production potential as the adjacent N Pool
where 6 wells have produced 680,000 barrels oil since 1997. In the
overall, the Sylvan Field has produced 40 million barrels oil from the
Pekisko formation and 50 billion cubic feet gas from the Shunda

Ensign Drilling will test a total of 30 feet from several zones in the
Shunda formations at 7,155 feet which is prospective for natural gas and
a 30-foot Pekisko oil formation at 7,320 feet. When drilling resumes,
the hole is planned to reach a total depth of 7,570 feet, which may take
some 10 days to then complete drilling and testing.

The Company has a 25% project working interest with the potential for 4
oil and 1-gas wells. On the basis of producing 150 barrels oil per day
(which may be low) and oil priced at $44 per barrel, the Company has the
potential to earn $440,000 CND per well per year, or therefore a total
of $1,760,000 per year from four wells with no credit for gas. There is
a gas gathering system in the immediate area and oil will be trucked 3
miles to a pipeline terminal.


The Company is pleased to report that production casing has been run to
1,840 feet on the initial well and on the basis of log interpretation
the well may have the potential to produce approximately 250,000 cubic
feet gas per day with potential reserves of approximately 0.5 billion
cubic feet gas. A continuous flow production test will now be completed
to determine actual production rates and reserves. There is an available
gas gathering system in the immediate area. The Company has a 12.5%
working interest with the potential for 6 gas wells.


Energy 51, the operator of both the Barrhead and Sylvan Lake Plays,
intends to propose additional development drilling projects in the next
few months where the Company may elect to participate on paying 33% of
the costs to earn a 25% working interest.


As part of the Nova Chemicals Corporation / CanWest Petroleum
Corporation Joint Venture, further analysis including liquid
characterization tests will be conducted and in addition, a laboratory
scale steam assisted retort is being built, which will produce basic
data needed for possible development of an advanced steam assisted

As part of the Joint Venture, Refinery Science Corp in conjunction with
the University of Texas El Paso campus, is preparing Pasquia Hills oil
shale samples for characterization tests at the Stanford Synchrotron
facility in California, which is funded by the US Department of Energy.

The Company may be required to drill further core holes at the Pasquia
Hills mine site in the second quarter to retrieve additional oil shale
samples for further testing.

Safe Harbor statement under the Private Securities Litigation Reform Act
of 1995: Except for historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties, including but not limited to economic,
competitive, governmental and technological factors effecting the
Company's operations, markets, products and prices and other factors
discussed in the Company's various filings with the Securities and
Exchange Commission.

Cuisp# 138748 10 8


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