CanWest Petroleum Corporation
OTC Bulletin Board : CWPC

CanWest Petroleum Corporation

August 16, 2005 09:00 ET

CanWest Petroleum Corporation: Progress Report; Aggressive Exploration and Development Programs Over the Next Four Months

CALGARY, ALBERTA--(CCNMatthews - Aug. 16, 2005) - CanWest Petroleum Corporation (OTCBB:CWPC) -


Thornton Donaldson, President is pleased to report progress in all four of its core prospects, including the Athabasca Firebag East Oil Sands Prospect, Pasquia Hills Oil Shale Project, development drilling for revenue, and its technology research program. He notes, "each of the programs are fully funded at this time and under the direction of experienced management who expect significant results from each prospect during the remainder of the year. While the investment community has come to realize the significance of the Athabasca Oil Sand Deposits to the North American energy equation, our Company with the largest land holdings in the region has recently received considerable attention from both investors and industry. While it is understandable that our Athabasca Oil Sands Program, given its potential, is receiving the most attention, the other projects will continue to be of importance."



The initial exploration program is underway with pre drilling surveys, camp procurement, and necessary environmental studies being completed at this time. Oilsands Quest has been in regular consultation with key Federal and Saskatchewan Provincial government ministries who are involved in the approval process. The Government has been supportive and encouraging and is assisting the company throughout the approval process. Because this is the first exploration program for Athabasca Oil Sands within the Province of Saskatchewan, the approval process has taken extra time and care, given the precedents being undertaken. In addition, Oilsands Quest has been meeting with the communities in and around its permit lands with a positive reception to initiate a working relationship. These communities include the Clearwater River Dene First Nation, Meadow Lake Tribal Council, several Metis groups and the towns of La Loche, Descharme Lake and Buffalo Narrows.

The initial drill program proposed will include approximately 25 holes to be cored for samples as well as geophysically logged. The location will be in an area east of Suncor Energy Inc's Firebag production and will include twinning previous holes drilled in the 1970's where drill cores recovered bitumen that assayed up to eleven percent bitumen by weight and porosities over 35%.

The geology suggests the same paleochannels which host some 14 billion barrels reported reserves to the west may extend onto Oil Sands Quests permits. These channels tend to be east / west oriented and are dipping to the west. Oilsands Quest owns a 100% interest in 847,000 acres and have completed a $4,400,000 Canadian financing with CIBC-World Markets as agent. Oilsands Quest is owned 54.4% by CanWest which is maintained a right of first offer of future financing. Oilsands Quest is a private Calgary based operating company with oil sands exploration and development expertise in the Athabasca Region under the direction of Christopher Hopkins, President and CEO. CanWest is reviewing other potential acquisitions within the Athabasca Region.


Oil sands development opportunities are attracting world-class oil producers:

- April, 2005 - Husky discloses plans for 200,000 barrels/day Sunrise oils sands project;

- April, 2005 - Petro-China signs deal with Enbridge to secure up to 200,000 barrels/day of pipeline capacity to Canada's west coast;

- April, 2005 - CNOOC invests $122 million in MEG Energy;

- March, 2005 - Suncor applies to Alberta regulators to build third plant for $5.9 billion;

- March, 2005 - PetroCanada agrees to partner (60%) with UTS in the Fort Hills Project with a joint development commitment of $1 billion;

- May, 2005 - Sinopec purchases a 40% interest in Syneco's Northern Light Project for $149.50 million and Sinopec will be responsible for an estimated $1.8 billion of project costs; and

- August, 2005 - Total E&P Canada purchases Deer Creek Energy Limited for $1.35 billion.


Recent characterization tests of shale oil samples from the Pasquia Hills Oil Shale Project are encouraging as the benzene and naptha components which are 30% of the total hydrocarbon content may have potential use for basic petrochemical feedstocks by Nova Chemicals Corporation. The remaining 70% of the saturates and aromatics may be utilized by another company for sale to other markets. The tests of the oil samples also show that initial refining may recover 92% of hydrocarbons present, which is very positive.

The next phase of the scoping study will include further retort tests under the direction of Apex Engineering of Edmonton to determine maximum yield; recalculation of the higher grade sections of the 2.4 billion barrel mine site resource; and review of available infrastructure in the Pasquia Hills area including pipelines, railroads, refiners, and various energy sources. Two of the permits cover the mine site area totaling 189,000 acres will be converted to development leases in October of this year.

The Pasquia Hill Oil Shale Project is 97.3% owned by CanWest and is approximately 850,000 acres of permits. It contains a 2.4 billion barrel oil resource within the mine site area which grades 7% kerogen by weight of which 59% is aromatics suitable for petrochemical feed stocks and other petroleum products. The project is under a joint development agreement with Nova Chemicals Corporation.

The company has entered an option agreement at an initial cost of $ 14,000 to earn a 100% interest in a 2,470 acre oil shale concession located in Honduras that has a geologic potential for over 2 billion tons oil shale. Surface samples are being shipped to Apex Engineering for detailed analysis at this time with no further work planned until the sample results are known.


CanWest owns 1,500,000 shares of Energy 51, a private Calgary based oil and gas exploration and development company. CanWest also has the right to drill oil and gas plays on a preferential basis until May 2006 on a third for quarter basis. The Company has a 25% working interest in the Sylvan Lake play located in central Alberta where the initial test well has been logged and production casing run to 7,450 feet. A 30-foot Pekisko formation is highly prospective and a service rig will be on-site in August to perforate and production test the Pekisko zone.

In addition, the Company has a 12.5% working interest in the Barrhead natural gas play where Energy 51, the operator, intends to complete two wells this month.

The Company may participate in further development well programs to realize sustainable production revenues in the near term.


CanWest has reached agreement with Apex Engineering Inc. of Edmonton, Alberta, to earn up to 80% of all commercial applications for certain technologies, including the Sulfoxy Process, that may significantly increase bitumen extraction efficiency and reduce processing costs for Athabasca Oil Sands. The technologies may also have environmental advantages including the re-use of tailings pond water.


William Scott Thompson, BBA, of Houston, Texas has agreed to become a Director of Oilsands Quest, CanWest's operating subsidiary of the Firebag East Athabasca Prospect. He will replace Paul Watson, petroleum geologist, who resigned as a Director of Oilsands Quest given his recent appointment and duties as President of Energy 51 Inc. Scott has over 25 years experience in the oil and gas industry and is the President of Harris-Forbes, Inc., which, with its partners, owns a significant number of shares in CanWest.

In addition, Errin Kimball, B.Sc.-Geology has been appointed Vice President, Exploration for Oilsands Quest. Errin has extensive experience in all aspects of exploration and drilling for bitumen (oil) in the Athabasca Region. He reports to Christopher Hopkins, President of Oilsands Quest.

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.

Cusip# 138748 10 8

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