ST. JOHN'S, Aug. 26 /CNW/ - NWest Energy Inc. ("NWest" or "the Company",
TSX-V: NWN), an oil and gas exploration company with licences offshore western
Newfoundland, is pleased to announce the results of its Exploration 3D ("E3D")
Two E3D surveys were acquired in the last quarter of 2008, covering an
area of approximately 598 sq km in total. The seismic program was designed to
investigate several of the high-graded structures that had been identified in
the Sproule Resource Assessment Report completed under National Instrument
51-101 ("NI 51-101") on behalf of the Company in 2007. The Southern area
seismic survey focused on the 'T' Structure which was estimated by Sproule to
have potential Undiscovered Resources of 572 million barrels ("MMBbls")
Original Oil in Place ("OOIP"). The Central area seismic survey targeted the
'N' and 'O' Structures which were estimated by Sproule to have potential
Undiscovered Resources of 312 MMBbls OOIP and 444 MMBbls OOIP respectively.
NWest retained GEOSEIS Inc. ("GEOSEIS") of Calgary, Alberta in March 2009
to assist the Company's management with the interpretive analysis of data
acquired from the E3D seismic survey. Local well data, regional geology and
historical 2D seismic data were also incorporated by GEOSEIS to prepare
Probabilistic Resource Estimates under NI 51-101. The following progress and
conclusions resulted from GEOSEIS's geological and geophysical technical
- The 'T' Structure previously mapped by Sproule and Mobil in the
Southern Area has been confirmed.
- Upgrading of the 'T' Structure from exploration lead to prospect status
and the identification of two alternative well locations for
consideration. The structure has been extended aerially in size and
requires some follow-up data to confirm southwesterly closure on the
- Volumetric probabilistic modeling for the 'T' Prospect results in a
Mean potential Undiscovered Resources of 597 MMBbls OOIP and Mean
Prospective Resources of 114 MMBbls. The uncertainty associated
with these pre-drill success case modeling results is large (100's of
millions of barrels).
- Understanding of potential reservoir and trapping mechanisms associated
with the 'T' Prospect has been advanced.
The Central area seismic acquisition program was suspended in December
2008 due to adverse weather conditions and will need to be completed in order
to advance evaluation of the 'N' and 'O' Structures.
NWest Interim President and Chief Executive Officer Robert Webb said "The
confirmation and upgrading of the 'T' Structure from exploration lead to
prospect status is a critical milestone for the NWest. It is also exciting to
consider the possible potential of the remaining 10 high-graded structures
identified by Sproule that require further evaluation and present multiple
target scenarios. The current E3D seismic data has covered less than 10% of
the 1.6 million acres held 100% by the Company.
After all the work that has been carried out over the last several years,
we believe that western Newfoundland represents an attractive exploration
region. Our prospect and leads lie within an active petroleum system that
contains proven source rocks. The NWest acreage is a rare opportunity for the
development of hydrocarbons which are close to shore in relatively shallow
water depths, near North American markets and with a stable fiscal
environment. Due to the positive result of the seismic interpretation, NWest
is commencing a farm-out marketing campaign to find a joint-venture partner
who shares our vision of making a commercial hydrocarbon discovery offshore
Capitalized terms related to resource classifications used in this press
release are based on the definitions and guidelines in the Canadian Oil and
Gas Evaluation Handbook ("COGEH").
Undiscovered Resources those quantities of oil and gas estimated on a
given date to be contained in accumulations yet to be discovered. There is no
certainty that any portion of the undiscovered resources will be discovered
and that, if discovered, they may not be economically viable or technically
feasible to produce.
Prospective Resources are those quantities of oil and gas estimated to be
potentially recoverable from undiscovered accumulations. Prospective Resources
have both an associated chance of discovery and a chance of development. If
discovered, they would be technically and economically viable to recover.
However, there is no certainty that the Prospective Resources will be
About NWest Energy
NWest Energy is a Canadian junior oil and gas company exploring
high-margin frontier basins. Through its exploration licenses, NWest holds
approximately 1.6 million acres of highly prospective property in a
geologically favourable environment for exploration offshore western
Newfoundland. To date, NWest has completed an initial evaluation of the
exploration licenses and an exploration seismic program. Further information
regarding the company and its exploration licences is available at
GEOSEIS Inc. (www.geoseis.ca), a GG&E consulting and technology services
company, provides interpretation, mapping and project management services to
Canadian and International clients with emphasis on upstream exploration,
development and assessment of oil and gas projects.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The
statements made in this News Release may contain certain forward-looking
statements. Actual events or results may differ from the Company's
expectations. Certain risk factors may also affect the actual results
achieved by the Company.
There can be no assurance that forward-looking information will prove to
be accurate. Should one or more of these risks and uncertainties materialize,
or should underlying assumptions prove incorrect, actual results may vary
materially from any conclusions, forecasts or projections described in the
forward-looking information. Accordingly, readers are advised not to place
undue reliance on forward-looking information. Except as required under
applicable securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information, whether as a result of
new information, future events or otherwise.
For further information:
For further information: Robert D. Webb, Interim President & Chief
Executive Officer, (709) 722-3959, firstname.lastname@example.org