New West Energy Services Inc.

October 19, 2010 20:16 ET

New West Energy Services Inc. Announces Commencement of Major Project

CALGARY, ALBERTA--(Marketwire - Oct. 19, 2010) - New West Energy Services Inc. (TSX VENTURE:NWE) ("New West" or the "Corporation") is pleased to announce that its wholly owned subsidiary, New West Drilling Fluids Inc., head-quartered in Calgary, Alberta, has been awarded a steam assisted gravity drainage ("SAGD") multi-well oilsands drilling fluids operation (the "Project") for a major exploration and production oil company, scheduled to commence in January of 2011.

New West will be utilizing its patented BITUDRIL Drilling Fluids System (the "System") and will provide all of the drilling fluids, engineering and supervision for the Project. To management's knowledge, the System is the only patented polymer system for the steam-assisted gravity drainage ("SAGD") market.

The Project consists of 98 SAGD injector and producer wells (49 each) scheduled to be completed over a 24 month span, commencing in January of 2011 and generating projected total revenue of approximately $6 million. The Corporation is scheduled to commence, in November 2010, a second SAGD project with another major international oil and gas company that will consist of approximately 108 wells. Anticipated revenues from this project are approximately $6-7 million.

About New West

New West is a full service drilling fluids company to the oil and gas industry in Western Canada. Its products and services are unique to the industry as they have been developed to address client specific problems in drilling oil and gas wells, with specific emphasis on SAGD projects. New West's products maximize efficiency while minimizing costs and environmental impact. New West's other wholly owned subsidiary, Bearstone Environmental Solutions Inc., provides environmental and vacuum truck services to the oil and gas industry.

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by New West. The forward-looking statements or information contained in this news release are made as of the date hereof and New West does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • New West Energy Services Inc.
    Richard J Collens
    Chief Financial Officer
    403.263.7558 (FAX)