New West Energy Services Inc. provides further details regarding proposed merger with Terralog Technologies Inc. and announces private placement financing


    CALGARY, Sept. 18 /CNW/ - New West Energy Services Inc. (TSX-V: NWE)
("New West") today provided an update and further details regarding the
proposed merger of New West and Terralog Technologies Inc. ("TTI") and TTI's
acquisition of all of the shares of PT Terralog Teknologi Indonesia
("PT TTI"), of which TTI is currently a minority shareholder.
    As New West announced in a press release on July 28, 2008, New West and
TTI have entered into a Letter of Intent relating to the proposed merger and
certain related transactions (collectively, the "Acquisition"). New West, TTI
and TTI's shareholders are continuing due diligence and discussions regarding
the structuring of the Acquisition and definitive documentation. New West
expects that definitive agreements will be executed later in September 2008.
However, there is no guarantee that the parties will enter into definitive
agreements or that the transaction will proceed on the basis described below
and in the July 28 news release or otherwise. The Acquisition is subject to a
number of conditions, including due diligence, New West shareholder approval
and regulatory approval.
    As currently contemplated, the Acquisition involves the following

    -   New West will conduct an offering of subscription receipts or common
    shares on a private placement basis for gross proceeds of approximately
    $6.6 million, the net proceeds of which will fund the cash portion of the
    Acquisition. See below for further details of the private placement.

    -   The single largest holder of TTI and PT TTI shares will transfer its
    interests in TTI and PT TTI to New West and TTI in exchange for
    $7.75 million cash, the forgiveness of a US $350,000 note and 1,500,000
    New West shares. Of these payments, $1.75 million will be paid out of the
    treasury of PT TTI. Additionally, the shareholder will retain an earn-out
    payment related to TTI's Duri Slurry Fracture Injection project in
    Sumatra, Indonesia and will be transferred certain intellectual property
    rights relating to TTI's bio-solids business;

    -   The remaining common and preferred shares of TTI held by the
    remaining TTI shareholders will be redeemed by TTI for cash of
    approximately $700,000 and purchased by New West in consideration of the
    issuance of approximately 11,356,000 common shares of New West;

    -   All New West common shares issued in exchange for TTI shares will be
    subject to an 18 month escrow period.

    About TTI and PT TTI

    TTI is a private company with its head office located in Calgary,
Alberta. It is a leading international service company that specializes in
petroleum geo-mechanics and deep well disposal waste management using slurry
fracture injection technology. PT TTI, has its head office in Jakarta,
    TTI has been in operation for approximately 8 years. It has gained
international prominence working through PT TTI for the past 4 years of a long
term contract with Chevron Pacific Indonesia disposing of production wastes at
the Duri oilfield in Sumatra Indonesia.
    TTI is currently working under contract with StatoilHydro of Bergen,
Norway providing technical and engineering support for 5 offshore CRI disposal
wells in the North Sea.
    TTI has made significant business development inroads with other
international concerns that TTI anticipates will start field operations in the
future. While these projects are in various stages of discussions, it must be
noted that final approvals have not yet been given for these projects, and
operating agreements have not been negotiated for these projects. These
projects include:

    -   Wafra Joint Operation (Kuwait Gulf Oil Co & Saudi Arabian Chevron),
        Wafra Kuwait cleaning up 3.2 million barrels of Oilfield E & P waste.
        Anticipated start up 2009.

    -   ZADCO (part of ADNOC group, the national oil company of UAE), Abu
        Dhabi, UAE, offshore waste disposal on Drilling and Production
        Islands in Arabian Gulf. 2008 - Proposal submitted for technical and
        feed work. 2011 - Anticipated start of field operations on islands;
        Oilfield E & P waste.

    -   Kuwait Oil Co (KOC), Ahmadi, Kuwait - oilfield E & P waste at Burgan
        oilfield. 2008 - Expected proposal to be submitted for technical and
        feed work. 2009/10 - Anticipated start of field operations for
        Oilfield E & P waste.

    Market development is ongoing in Saudi Arabia, China and Brazil.
    TTI is involved as well in Carbon Capture and Storage ("CCS") CO(2)

    -   TTI is the only company world-wide with extensive experience in large
        scale, continuous deep well injection into deep saline aquifers.
    -   TTI is using this experience to develop CCS markets/projects - i.e.
        deep well injection into deep saline aquifers is critical for
        successful CCS projects.
    -   TTI is in talks with substantial utility companies in Alberta and
    -   This market and technology have significant emerging market
    -   TTI has patent applications pending on a proprietary "Integrated
        Insitu CCS" process.

    TTI Financial Information
    The following table sets out certain financial information of TTI based on
consolidated audited statements for the years ended December 31, 2007 and

       Consolidated Financial Statements of Terralog Technologies Inc.
                               (Canada and USA)

                                                  December 31,   December 31,
                                                  ------------   ------------
                                                      2007           2006
                                                      ----           ----
    Revenue                                     $   5,993,370  $   1,780,310
    Direct Expenses                                 5,729,125      2,257,782
    Net Income                                       (227,938)      (657,452)
    Working Capital                                 2,438,886      2,477,479
    EBITDA                                            (91,263)      (508,191)
    Total Assets                                    4,446,395      3,929,641
    Long Term Debt                                          -              -
    Shareholders' Equity                            4,284,719      3,994,486

      Audited Financial Statements of PT Terralog Teknologi Indonesia (US$)

                                                  December 31,   December 31,
                                                  ------------   ------------
                                                      2007           2006
                                                      ----           ----
    Revenue                                     $   6,348,888  $   5,501,892
    Direct Expenses                                 2,472,218      2,710,070
    Net Income                                      1,580,387        933,722
    Working Capital                                 3,181,219      1,400,408
    EBITDA                                          3,458,198      3,138,347
    Total Assets                                    4,438,243      2,575,414
    Long Term Debt                                    368,256        252,338
    Shareholders' Equity                            3,286,929      1,706,542

    Proposed Changes in Management of New West

    New West currently expects that the board of directors of New West after
giving effect to the Acquisition of TTI will include the following

    William Rand
    Joe Scarlett
    Roman Bilak (new)
    Dr. Leo Rothenburg (new)
    One other director to be named

    The proposed senior management team for New West upon completion of the
Acquisition is currently expected to include the following individuals:

    Roman Bilak - President and Chief Executive Officer
    Richard Collens - Chief Financial Officer
    William Rand - Chairman
    Jarrod Isfeld - Corporate Secretary

    Joe Scarlett will remain President of New West Drilling Fluids Inc., a
wholly owned subsidiary of New West.

    Information Regarding Proposed New Directors

    Roman Bilak M.Sc - Graduated from the Univ. of Waterloo, Ont. Founder and
President/CEO of TTI. Has had significant involvement in the development and
commercialization of the slurry fracture injection process. He is a leading
expert on large scale, deep well waste-injection operations.
    Dr. Leo Rothenburg - Dean of Engineering Faculty, Univ. of Waterloo, Ont.
Past Chairman of the Dept. of Civil Environmental Engineering, Univ. of
Waterloo. He is a leading expert in Geological Engineering, Geo-mechanics and
Civil Engineering.

    Proposed Private Placement
    New West has engaged the service of Octagon Capital Corporation to
conduct a private placement of common shares or subscription receipts of New
West to raise approximately $6,600,000 to finance the cash portion of the
purchase price for the acquisition of TTI. Completion of the transaction is
subject to a number of conditions including, but not limited to, market
conditions, TSX Venture acceptance, shareholder approval, completion of due
diligence and third party consents. There can be no assurance that the private
placement will be completed as proposed or at all.

    On behalf of the Board of Directors of
    New West Energy Services Inc.

    Robert Chase

    Robert Chase
    President and Director

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Forward-Looking Information

    Certain information contained in this press release, including
information and statements which may contain words such as "estimates",
"would", "will", "contemplates", "expects" and similar expressions and
statements relating to matters that are not historical facts, are
forward-looking information including, but not limited to, information as to
the completion of the transaction between New West and TTI.
    This forward-looking information is based on certain material factors,
assumptions and analyses made by New West in light of its experience and its
perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. However, whether actual results, performance or achievements
will conform with New West's conclusions, forecasts, projections, expectations
and predictions expressed or implied by the forward-looking information in
this press release is subject to known and unknown risks and uncertainties
which could cause actual results to differ materially from New West's
conclusions, forecasts, projections, expectations and predictions expressed or
implied by the forward-looking information in this press release, including:
that the transaction between TTI and New West may not close for various
reasons including but not limited to, on account of conditions of closing not
being fulfilled, the failure to obtain regulatory or third party approval, the
inability to raise the necessary funds to complete the transaction or the
transaction may not be approved by the shareholders of New West. Additional
risks may be described in New West's Annual Report for the most recently
completed financial year end which may be found on SEDAR at If
any of the above risks or uncertainties materialize, or if the material
factors, assumptions and analyses applied by New West are incorrect, actual
results may vary materially from those expected in the forward-looking
information in this press release.
    Consequently, all of the forward-looking information contained in this
press release is qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by New West
expressed or implied by the forward-looking information in this press release
will be realized or, even if substantially realized, that they will have the
expected consequences to or effects on New West or its business operations.
New West assumes no obligation, except as required by law, to update publicly
any such forward-looking information, whether as a result of new information,
future events or otherwise. Readers should not place undue reliance on
forward-looking information.

For further information:

For further information: Richard J Collens, Chief Financial Officer,
Telephone: (403) 303-2665, Fax (403) 263-7558, Email:

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