NWest Energy Operational Update - Results of
E3D Interpretation
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�) seismic interpretation.
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 studies:
- 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
expanded area.
-
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 western Newfoundland .�
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 discovered.
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 www.nwestenergy.com.
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.��
Robert D. Webb,
Interim President & Chief Executive Officer
709.722.3959
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.