CALGARY, May 27, 2011 /CNW/ - MegaWest Energy Corp., (the "Company" or
"MegaWest"), (OTCBB: MGWSF) has experienced a number of positive
changes in the Company since the beginning of 2011.
On January 4th, 2011, Mr. Tim Morrison was appointed President and Chief Executive
Officer (CEO). Mr. Morrison has 10 years of oil and gas experience
domestically and internationally both on land and offshore. Mr.
Morrison has an engineering back ground and experience in various
conventional and unconventional oil projects from both a service
company point of view as well as the operator. Since taking the
position, Mr. Morrison has focused on bringing production online,
managing the ultimate lifting cost of the oil, and restructuring the
management of the company. "I have had time to evaluate the company,
the assets, the reservoirs and the potential and I can't believe the
potential this company has in bringing production to market, especially
in such a favorable commodities market" said CEO Mr. Tim L. Morrison.
At the Annual General Meeting Mr. Morrison and Mr. Eldon Schorn were
elected to the Board of Directors of the Company. Mr. Schorn has been
actively involved in senior positions with a number of public, private
and governmental organizations. Mr. F. George Orr, a Director of
MegaWest was appointed interim Chief Financial Officer (CFO). Since the
beginning of the year the Company has closed financings totaling US
$4.6 million utilizing these funds to enhance production at its
Deerfield properties in Missouri.
Several new materials, chemicals, processes and equipment technologies
have been tested in the field. Results have yielded some extremely
promising opportunities in enhancing production and lowering operating
costs. MegaWest Energy has employed several proprietary technologies
under exclusive rights which the Company expects will create market
advantage as such technologies and their influence are disclosed.
According to Mr. Morrison, "We are committed to embracing and
considering any technologies which present opportunity to enhance heavy
oil production or lower lifting costs, and I believe we have already
identified a few which will differentiate and separate operators in
heavy oil exploitation. Operators who do not tirelessly keep pace with
the available technologies will be left far behind in the race to
developing the domestic unconventional oil plays." MegaWest plans to
disclose general information and substantiating data pertaining to the
aforementioned technologies as appropriate and available.
Grassy Creek and Marmaton Missouri Combined Average Daily Oil
While daily oil production has averaged approximately 60 bopd for the
past six months, production has been as high as of 125 bopd.
The Company expects the production trends to increase as heating
patterns are continuing to expand and implementation of new
technologies which are being tested are incorporated into the
production and operational strategy.
New test patterns have been planned, permitted and drilling began in
early April, 2011. The new pattern will incorporate all lessons learned
from prior completions, geology and production history. MegaWest
expects to see results of the new patterns near the end of May, 2011,
as the patterns are heated up.
About MegaWest Energy Corp.
MegaWest is an independent oil and gas company, specializing in
non-conventional oil and gas projects with a focus on American heavy
oil with particular emphasis on the Deerfield area of western Missouri.
The Company has two individual 320 acre steam injection projects in the
Deerfield area with approximately 20 acres developed on each of the
Marmaton and Grassy projects. In the Deerfield area, excluding the 40
acres of developed land, the Company has an operated 90% working
interest in over 15,400 acres of undeveloped land prospective for heavy
oil development and has identified a number of additional potential
steam injection projects on this land base. In total, including the
Deerfield Missouri acreage, the Company owns a 70% working interest in
73,241 acres of undeveloped land prospective for heavy oil development
and exploration in Missouri, Kansas, Kentucky, and Montana. For more
information, please visit www.megawestenergy.com.
This press release contains forward-looking information and statements
including opinions, assumptions, estimates, and expectations of future
production performance and cash flow requirements. Forward-looking
statements include information that does not relate strictly to
historical or current facts. When used in this document, the words
"anticipate", "believe", estimate", "expect", "forecast", "intent",
"may", "project", "plan", "potential", "should" and similar expressions
are intended to be among the statements that identify forward-looking
statements. Predictions of steam flood performance and future
production rates are forward-looking statements. Forward-looking
statements are not guarantees of future performance and are subject to
a wide range of known and unknown risks and uncertainties, and although
the Company believes that the expectations represented by such
forward-looking statements are reasonable; there can be no assurance
that such expectations will be realized. We have attempted to identify
important factors that could cause actual results, performance or
achievements to vary from those current expectations or estimates
expressed or implied by the forward-looking information, which include
the ability of the Company to raise sufficient capital to carry out its
business plan, including the risk of adverse market prices of both oil
and natural gas, operational risks and geological risk.
These and other 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 the
financial statements, management discussion and analysis and Form
51-102F1 filed in Canada), the Company's annual reports (on Form 20-F
filed in the US and the financial statements, management discussion and
analysis and Form 51-102F1 filed in Canada) and the other recent
filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe
harbour for forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.
SOURCE MegaWest Energy Corp.
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