Message from the President...
 Welcome Back,
May has been an eventful month both at Ameriwest Energy and within the Wyoming Oil and Gas business. In May, Ameriwest more than doubled the acreage it secured under letters of intent with the announcement of the Cole Creek oil field. The Cole Creek property is extremely diverse in that it has primary, secondary, and tertiary recovery potential. An independent professional geologist estimates that the field had over 125 million barrels of original oil in place with approximately 18 MMBO produced to date. At closing, Ameriwest will assume an interest in 10 wells producing approximately 35 net BOPD with production increasing by another 35 +/- BOPD in September when well #31-17 reaches payout.
With oil pricing doubling since 2006, the Powder River Basin is shaping up to be the next big CO2 tertiary recovery play and Ameriwest is on the forefront of property acquisitions. There are currently 9,700 producing wells within Wyoming State with an average production rate of 13 BOPD per well. We have chosen the Powder River Basin area to begin building Ameriwest as the presence of mature fields coupled with increasing pressure to find productive uses of excess CO2. Earlier this month, State regulators in Wyoming delayed renewing Exxon’s application to vent CO2 into the atmosphere indicating they wanted more proof that Exxon has attempted to market the excess CO2 for alternative purposes.
 Ameriwest properties are located in the heart of the CO2 play in the Powder River Basin. The Cole Creek project is +/- 30 miles south of the famous 100 year old Salt Creek Field where Anadarko Petroleum has successfully implemented a full field CO2 flood program. The South Glenrock “C” is less than 1 mile away from the Big Muddy CO2 development project which is expected to initiate a CO2 injection program in 2010. The strategic locations of our properties position Ameriwest to benefit from the development of other CO2 projects within the area.
Over the next month we will work along with Ryder Scott and NITEC LLC to complete the reservoir engineering and reserve reports on the Burke Ranch, South Glenrock “C” and Cole Creek properties. In addition, we will continue to work towards closing the Skull Valley Prospect and announce an expected drilling date. We thank you for your interest in Ameriwest and hope you are looking forward to our next edition.
Sincerely,
Walter Merschat, President
Ameriwest Energy, Corp.
The State of Wyoming has over 26,300 gas wells producing 234 thousand cubic feet of gas per day. Much of this gas contains CO2 which is stripped during the production process and has historically been vented into the atmosphere. Now with the international pressures to reduce the amount of CO2 released into the atmosphere to reduce Global Warming the gas producers are seeking alternative uses for the undesirable CO2 by-product such as injection into existing oil and gas reservoirs.
In 2007 Exxon Mobile alone sold an average 207 million cubic feet of CO2 per day for enhanced oil recovery and vented another 181 million cubic feet of CO2 per day into the atmosphere. In addition, Exxon plans to upgrade its LaBarge gas plant in Wyoming which will increase the amount of CO2 it can produce by 97 million cubic feet a day by 2010.
According to NITEC LLC, the South Glenrock “C” requires approximately 10 MMCF/day to reach maximum production. This is less than 5% of Exxon’s projected excess CO2 capacity in 2010. |
Burke Ranch Field
- 1,920 acres within the unit and +/- 7,500 acres adjacent to unit
- Primary, Secondary and tertiary recovery potential
- 20 miles South of Anadarko’s Salt Creek CO2 project and 20 miles North of the Big Muddy CO2 project.
- 15 prospective drilling locations indentified.
- Average depth of 6,500 feet
Contact us
Head Office
123 West 1st Avenue
Suite 215
Casper, WY 8260
Investor Relations
TEL: 1-888-697-4712
EMAIL: investors@ameriwestenergy.com
Visit Our Website
www.ameriwestenergy.com
Disclaimer
This document contains forward-looking statements, particularly as related to, among other things, the Company's business strategy. The words or phrases "would be", "will allow", "intends to", "may result", "are expected to", "will continue", "anticipates", "expects", "estimate", "project", "indicate", "could", "potentially", "should", "believe", "considers" or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause the Companies actual results, performance or achievements, or developments in its industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks, uncertainties and other factors that are detailed in the Quarterly and Annual Reports and other documents filed by the Company from time-to-time with the Securities and Exchange Commission. This document may be presented along with certain Company press releases, which are relevant as of the date of the given press release and should not be relied upon as of any subsequent date. Management cautions readers not to place undue reliance on such statements. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates.
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