West Energy Ltd. comments on short-term investment status


    CALGARY, Aug. 17 /CNW/ - West Energy Ltd. ("West" or the "Company")
(TSX: "WTL") advises on the impact of global credit markets on $29.97 million
of its $31.20 million in cash and investments. West understands that A Notes
(asset backed securities) from the following Trusts were purchased on West's
behalf by its bank;

                                                      Maturity   Proceeds Due
    Note Issuer        Purchase Date  Purchase Price  Date       On Maturity

    Apsley Trust       August 07,     $ 6,994,050     August 14, $ 7,000,000
                       2007                           2007
    Rocket Trust       August 07,       9,991,500     August 14,  10,000,000
                       2007                           2007
    Whitehall Trust    August 07,       9,791,670     August 14,   9,800,000
                       2007                           2007
    Silverstone Trust  August 07,       3,197,280     August 14,   3,200,000
                       2007                           2007

    TOTAL                             $29,974,500                $30,000,000

    West has been informed that the Trusts were unable to fund the repayment
on August 14, 2007 of the maturing Notes due to continuing market disruption
and that the Trusts were requesting funding under existing liquidity
facilities to support the Note maturities. West understands that certain banks
providing such liquidity facilities may have refused to provide the requested
funding. The Company is currently investigating the implications of these
events, which appears to be a result of the current lack of liquidity for
these asset backed securities which were rated by the Dominion Bond Rating
Service as R1-High. Yesterday a group of financial institutions announced that
they agreed in principle to a long-term proposal and an interim agreement
regarding asset backed commercial paper. The effect of this, if agreed to by
the parties and Note holders would, among other things, be to convert the
Notes into term floating rate notes maturing no earlier than the scheduled
termination dates of the underlying assets. The Company is working diligently
on solutions.
    West is unable to predict how long the current market disruption will
continue; however, the Company has sufficient cash, bank lines and cash flow
to meet its obligations and fund its 2007 capital program. In the interim,
West received from its banker an indicative term sheet to increase its
revolver and development loan credit facility which is currently undrawn from
$55 million to $80 million. The Company will continue to monitor these events
and will update shareholders as appropriate.
    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
securities offered will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration

    Reader's Advisory:
    Certain information regarding West Energy Ltd. in this news release
including management's assessment of the future plans and operations and their
timing may constitute forwarding-looking statements under applicable
securities laws and necessarily involve risks including, without limitation,
risks associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in
the forward-looking statements. Readers are cautioned that the foregoing list
of factors is not exhausted. Additional information on these and other factors
that were applied in drawing a conclusion or making a forecast or projection
as reflected in the forward-looking information and that could cause actual
results to differ materially from those anticipated in the forward-looking
statements are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com) or
at the Corporation's website (www.westeChgairmannergy.ca). Furthermore, the
forward-looking statements contained in this news release are made as the date
of this news release and the Corporation does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.

For further information:

For further information: West Energy Ltd., 600, 333 5th Avenue S.W.,
Calgary, Alberta, T2P 3B6, Main Phone: (403) 265-5202, Facsimile: (403)
263-7007; Attention: Ken McCagherty, President and Chief Executive Officer,
Email: McCagherty@westenergy.ca, Direct Phone: (403) 716-3458

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890