MegaWest Energy Corp.
OTC Bulletin Board : MGWSF

MegaWest Energy Corp.

July 18, 2007 10:00 ET

MegaWest Increases Land Holdings by an Additional 10,000 Acres

CALGARY, ALBERTA--(Marketwire - July 18, 2007) - MegaWest Energy Corp., (the "Company" or "MegaWest"), a Calgary based 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 acquisition of an additional 10,000 acres of land at the Company's core project areas in Missouri (Deerfield), Texas (Trinity Sands) and Kentucky (Kentucky Reserves) by its wholly-owned subsidiary, MegaWest Energy USA Corp. ("MegaWest USA"). This additional 10,000 acres brings the total of MegaWest Energy land holdings to over 70,000 acres.

The Company's President and CEO, George T. Stapleton, II stated, "MegaWest has always indicated to the Company's shareholders that we will continue to acquire large blocks of oil and gas rights known to contain substantial deposits of heavy oil, and the addition of this key acreage will increase the Company's potential resources significantly."

In addition to the land acquisition, the Company's President and CEO, George T. Stapleton, II also stated, "I am also very pleased to announce that the Board of Directors for MegaWest Energy has approved an increase in the 2007 Fiscal Budget from the previous approved budget of USD$19 Million to nearly USD$26 Million. This budget increase will allow the Company to increase delineation drilling and expand the scope and extent of the Demonstration Projects planned for each of the core areas."

MegaWest is an independent unconventional oil and gas company headquartered in Calgary, Alberta, Canada. MegaWest has operations in Texas, Kentucky, Missouri and Kansas. MegaWest will create shareholder value through the exploitation of North American heavy oil through the application of various methods of thermal and enhanced recovery.


George T. Stapleton, II, President, CEO & Director

Forward-Looking Statement Disclaimer

This press release contains "forward-looking statements" as defined by the Private Litigation Reform Act of 1995. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (a) the lack of additional financing to fund the Company's exploration activities and continued operations; (b) fluctuations in foreign exchange and interest rates; (c) the number of competitors in the oil and gas industry with greater technical, financial and operations resources and staff; (d) fluctuations in world prices and markets for oil and gas due to domestic, international, political, social, economic and environmental factors beyond our control; (f) changes in government regulations affecting oil and gas operations and the high compliance cost with respect to governmental regulations; (g) potential liabilities for pollution or hazards against which the Company cannot adequately insure or which the Company may elect not to insure; (h) the Company's ability to hire and retain qualified employees and consultants; and (i) other factors beyond the Company's control. When used in this document, the words "could", "plan", "estimate", "intend", "may", "potential", "should", and similar expressions relating to matters that are not historical facts are forward looking statements.

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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