AWEC Oil Stock: Ameriwest Energy Announces Preliminary Findings of Reservoir Evaluation at Cole Creek Oilfield
Ameriwest Energy Announces Preliminary Findings of Reservoir Evaluation at Cole Creek Oilfield
Ameriwest Energy Corp. (OTCBB: AWEC energy stock)
("Ameriwest" or the "Company") is pleased to announce that NITEC, LLC
("NITEC") has determined that an incremental 14.468 million gross standard
barrels of oil (MMSTB) may be recoverable from additional primary,
secondary and tertiary recovery efforts in the Second Frontier, Dakota and
Lakota Formations within the Cole Creek field.
As previously announced on April 21, 2008, Ameriwest commissioned NITEC of
Denver to evaluate earlier studies undertaken by MOBIL Oil plus a
subsequent study by an independent geologist undertaken as recently as
2001. Their assessment incorporates that data as well as a complete
evaluation resulting in the following findings in their report:
1. The Original Oil in Place (OOIP) estimates for the Second Frontier,
Dakota, and Lakota Formations in the Cole Creek Field are 15.0 MMSTB, 22.6
MMSTB and 10.5 MMSTB, respectively.
2. Remaining Oil in Place as of December 2007 was estimated to be 14.7
MMSTB, 14.8 MMSTB, and 9.8 MMSTB for the Second Frontier, Dakota, and
Lakota Formations, respectively.
3. The ultimate expected primary recoveries which assume further
development of the three formations in the field are estimated to be 1.50
MMSTB (10.0%), 4.46 MMSTB (19.7%), and 1.58 MMSTB (15.0%) for the Second
Frontier, Dakota, and Lakota formations, respectively.
4. The ultimate expected secondary recoveries which assume further
secondary development of the South compartment in the Dakota Formation, and
full implementation of water flooding in the Second Frontier, the North
compartment in Dakota, and Lakota are estimated to be 0.30 MMSTB (2.0%),
5.18 MMSTB (22.9%), and 1.58 MMSTB (15.0%) for the Second Frontier, Dakota,
and Lakota formations, respectively.
5. The ultimate recoveries under CO2 continuous, miscible flooding are
estimated to be 18.0% in the Second Frontier, Dakota, and Lakota
formations; 2.70 MMSTB, 4.07 MMSTB, and 1.89 MMSTB, respectively.
The OOIP estimates were based on volumetric calculations and material
balance estimations. NITEC determined that the volumetric and the material
balance results are consistent, adding certainty to these evaluations.
Ameriwest has the exclusive option to purchase a 35% working interest in
all the above listed formations and 68% working interest in the Shannon
Formation within the Cole Creek field. NITEC is currently evaluating the
Shannon Formation and the Company expects this evaluation to be completed
within the next three weeks.
Company President Walter Merschat comments, "We are very pleased by the
positive report from NITEC. The information is invaluable to us and
supports the earlier studies and data. With this evaluation in hand, we now
have a significant and up-to-date resource to utilize as we move forward
with our plans to exploit this asset. We will be studying the report
carefully and we hope to announce our plans in regards to our next steps
within the next few weeks."
About Ameriwest Energy Corp. (OTCBB: AWEC)
Ameriwest Energy Corp. is a growing, expertly managed energy company
focused on producing underdeveloped oil resources in the prolific Rocky
Mountain region of the United States. The company is striking a strategic
balance between low-risk tertiary recovery projects and extensively mapped
exploration plays with significant upside potential. Visit our website at
www.ameriwestenergy.com.
Notice Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains
certain "forward-looking statements" as defined by the Private Securities
Litigation Reform Act of 1995, including, without limitation, expectations,
beliefs, plans and objectives regarding development and exploration
activities. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of Ameriwest to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include general economic and
business conditions, the ability to acquire and develop specific projects,
the ability to fund operations and changes in consumer and business
consumption habits and other factors over which Ameriwest Energy Corp., or
any affiliate, has little or no control. Risks, uncertainties and other
factors are discussed in documents filed from time to time by Ameriwest
with the Securities Exchange Commission. There is no assurance that
Ameriwest's expectations will be realized, and actual results may differ
materially from those expressed in the forward-looking statements.
Information concerning oil reserve estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what might be
found to be present when and if a project is actually developed.
On Behalf of the Board
Ameriwest Energy Corp. Walter R. Merschat, President
