MegaWest Energy Corp.
OTC Bulletin Board : MGWSF

MegaWest Energy Corp.

November 13, 2007 10:30 ET

MegaWest Begins Production Facilities Construction for Its Deerfield Heavy Oil Project

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2007) - MegaWest Energy Corp., (the "Company" or "MegaWest"), an independent oil and gas company (OTCBB:MGWSF) (Cusip: #585168 107), specializing in non-conventional oil and gas projects with a focus on North American heavy oil, is pleased to announce the start of facilities construction and the drilling of development wells at its Deerfield Project. MegaWest is embarking on the first phase of commercial production of heavy oil from the Warner sandstone in Vernon County, southwest Missouri. The Company's existing land position exceeds 7,000 acres and will support multiple projects in the Deerfield Project area, so this project will be referred to as the Marmaton River Project - Phase I.

MegaWest's experienced team of enhanced oil recovery specialists have completed a detailed technical review of the Warner reservoir, including numerical reservoir simulation, and have updated the Company's geological model with information obtained from recent drilling operations. A steam-flood with thirteen inverted 7-spot patterns on a total area of 10 acres has been chosen as the production method for this initial development. This steam-flood process has proven very successful on numerous projects with similar types of deposits throughout Canada and the USA.

Construction has been initiated on the Marmaton River Project with the completion of commissioning and start-up of Phase I expected within 3-4 months. A 50 million BTU/hr steam generator will be installed along with production treating vessels and tanks. As part of the project implementation, MegaWest is drilling and completing 42 production wells, 13 injection wells, 1-2 source water wells, and 1-2 water disposal wells. The total estimated capital expenditure to construct and commission the facility and wells is US$ 3.3 million.

MegaWest expects to recover up to 45% of the oil in place on the Marmaton River Project. This project is expected to produce up to 100,000 bbls of oil over an 18-24 month period. The average production rate over this period is forecast to be 220 barrels of oil per day ("bopd") with a peak rate of 400 bopd achieved after 12 months of operation. The produced oil will be sold at the plant gate to a local refinery and is expected to receive over 80% of the WTI posted price.

The Company's COO, R. William Thornton, stated, "The Company anticipates that success of this 10-acre demonstration project could lead to an expansion of the Company's operations in stages until over 300 acres are under production at any time, resulting in an expected Project life of 20 years or more."

The Company's President and CEO, George Stapleton, stated, "This is a significant step for MegaWest in terms of proving and producing substantial deposits of heavy oil resources from our Deerfield Project in Vernon County, Missouri. I am extremely pleased that the MegaWest team has been able to move from acquisition of this Project through exploration to the implementation of Phase I of commercial development in just under one year."

Pictures of the development project site operations have been posted on the Company Web site under the "Projects" tab at

MegaWest's experienced management seeks to prove up significant resources and achieve early production from its world-class suite of operated properties. MegaWest now owns or has the right to earn an interest in over 100,000 acres in Texas, Kentucky, Missouri, Kansas and Montana. The underpinning for MegaWest's strategy is the convergence of the necessity for North American security of energy supply, current world oil prices, and significant commercial developments in thermal recovery technologies. Through delineation drilling and the completion of pilot thermal and enhanced recovery production tests, MegaWest plans to establish proven and producing unconventional heavy oil resources in each of its core areas.


George Stapleton, President & CEO

Forward-Looking Statement Disclaimer

This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the actual presence or recoverability of estimated oil and gas resources, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and on Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and Canada) and the other recent filings in the US and Canada. These filings are available at in the US and in Canada.

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