Ameriwest has entered into an exclusive option to purchase the Cole Creek Oilfield Unit and Adjacent Leases located on or near the Cole Creek anticline in Natrona and Converse Counties, Wyoming. These interests include leasehold, production, reversionary interests, reserves and equipment purchased from Alpha Development Company and JK Minerals. Ameriwest has also secured the exclusive option to purchase a 35% working interest in Cole Creek Oilfield's Second Frontier, Dakota and Lakota Formations and a 68% working interest in the Shannon Formation. The Cole Creek property features primary, secondary, and tertiary recovery potential.

There are approximately 14,000 gross acres of leasehold on or adjacent to the Cole Creek Anticline of which 7,800 acres are within the Cole Creek Unit and the balance in various Held By Production (“HBP”) and term leases. Within the Cole Creek Unit, Ameriwest is purchasing slightly more than 68% of all formations from the surface to the base of the Shannon Formation which is at 4500’ and will be operated by Ameriwest. Below the base of the Shannon formation, Ameriwest will own approximately 35% of the working interest in the productive formations which are Frontier, Dakota, and Lakota and the same percentage of the potentially productive formations which are the Niobrara Shale, Muddy Sand, Mowry Shale and the Tensleep Sand.

The Original Oil in Place (OOIP) in the Shannon, Second Frontier, Dakota, and Lakota formations was calculated in an early study by Mobil Oil and studied by an independent geologist in 2001. These earlier assessments indicate the OOIP was estimated at 125,298,000 standard barrels of oil (STBO), of which the Wyoming Oil & Gas Conservation Commission estimates 18,565,000 STBO has been produced.

NITEC recently completed a reservoir engineering report that incorporated the earlier work as part of a comprehensive study calculating potential reserves recoverable by primary, secondary and tertiary methods.

NITEC has determined an incremental 14.468 million gross standard barrels of oil (MMSTB) may be recoverable from additional primary, secondary and tertiary recovery efforts in the Second Frontier, Dakota and Lakota Formations within the Cole Creek field, with a net position of approximately 5.0 MMSTB to Ameriwest. NITEC estimates that under a CO2 continuous, miscible flood the Shannon Formation could potentially yield an additional 4.20 MMSTB of oil, with a net position of approximately 3.0 MMSTB to the Company.

The reservoir evaluation estimates the Original Oil in Place (OOIP) for the Second Frontier, Dakota, and Lakota Formations in the Cole Creek Field are 15.0 MMSTB, 22.6 MMSTB and 10.5 MMSTB, respectively. The OOIP for the Shannon Formation ranges from 23.0 MMSTB to 40.0 MMSTB, with a most likely value of 30.0 MMSTB. The OOIP estimates were based on volumetric calculations and material balance estimations.

NITEC’s assessment resulted in the following findings in their report:

1. The Original Oil in Place (OOIP) estimates for the Second Frontier, Dakota, and Lakota Formations in the Cole Creek Field are 15.0 MMSTB, 22.6 MMSTB and 10.5 MMSTB, respectively.
2. Remaining Oil in Place as of December 2007 was estimated to be 14.7 MMSTB, 14.8 MMSTB, and 9.8 MMSTB for the Second Frontier, Dakota, and Lakota Formations, respectively.
3. The ultimate expected primary recoveries which assume further development of the three formations in the field are estimated to be 1.50 MMSTB (10.0%), 4.46 MMSTB (19.7%), and 1.58 MMSTB (15.0%) for the Second Frontier, Dakota, and Lakota formations, respectively.
4. The ultimate expected secondary recoveries which assume further secondary development of the South compartment in the Dakota Formation, and full implementation of water flooding in the Second Frontier, the North compartment in Dakota, and Lakota are estimated to be 0.30 MMSTB (2.0%), 5.18 MMSTB (22.9%), and 1.58 MMSTB (15.0%) for the Second Frontier, Dakota, and Lakota formations, respectively.
5. The ultimate recoveries under CO2 continuous, miscible flooding are estimated to be 18.0% in the Second Frontier, Dakota, and Lakota formations; 2.70 MMSTB, 4.07 MMSTB, and 1.89 MMSTB, respectively.

The OOIP estimates were based on volumetric calculations and material balance estimations. NITEC determined that the volumetric and the material balance results are consistent, adding certainty to these evaluations.

Shannon Formation

Ameriwest has an exclusive option to purchase a 68% working interest in the Shannon Formation, also within the Cole Creek field. Based on the results of NITEC's recently submitted evaluation, Ameriwest's interest in the Shannon Formation could result in a net position of approximately 3.0 MMSTB of oil to the Company.

NITEC’s Assessment resulted in the following findings in their report:

1. The Original Oil in Place (OOIP) estimates for the Shannon Formation in the Cole Creek Field range from 23.0 MMSTB to 40.0 MMSTB, with a most likely value of 30.0 MMSTB.
2. As of December 31, 2007, the cumulative oil production and the remaining OIP in the Shannon were estimated to be 9.25 MMSTB and 20.75 MMSTB, respectively.
3. The ultimate primary and secondary recoveries estimated from historical data analysis and analogs are 5.96 MMSTB (19.9%) and 3.42 MMSTB (11.4%), respectively.
4. A CO2 continuous, miscible flood of the Shannon Formation is estimated to yield an additional recovery of 4.20 MMSTB (14.0%). This estimation was based on limited analog information.

The OOIP estimates were based on volumetric calculations and material balance estimations. The volumetric and the material balance results are consistent; however, NITEC has recommended validating these calculations with a numerical simulation model where the pressure data is locally matched at each well's location.

SUMMARY

The Cole Creek property provides Ameriwest Energy with both near and long term development potential. The reserve potential should allow the company to immediately develop the property and upon successful development increase production in the near future. The tertiary recovery potential alone demonstrates the long term sustainability of the property as it could extend the property’s production by 25 years. Currently, the existing operational wells within Cole Creek Field are producing a cumulative 225 BOPD. NITEC estimates tertiary production could increase to as much as 2,800 barrels of oil per day on the Cole Creek property.