Discovered in 1950, the South Glenrock field has approximately 25.48 MBO of OOIP with an estimated 17.67 million barrels of recoverable reserves remaining.

Ameriwest Energy recently entered into a Letter of Intent in order to secure a 99.5% working interest (78% net royalty interest) in the South Glenrock “C” field, a unit consisting of approximately 4,724 acres, located 20 miles outside Casper, Wyoming, in the southern region of the Powder River Basin.  This field is currently in production and is estimated to contain a projected 4.9 million barrels of oil (MMBO) recoverable by tertiary CO2 injection. Further, South Glenrock “C” is geologically similar to nearby Salt Creek field, which is currently undergoing a successful CO2 injection program by the Anadarko Petroleum Corporation.

The field, which produces from a Lower Muddy channel sand averaging 13 feet thick, is a classic example of a preserved stream channel encased in non porous and non permeable shales. It is our opinion that this encasement makes the field potentially very lucrative for CO2 tertiary oil recovery because the CO2 sweep would be contained within the sand reservoir rather than dispersed away laterally from the field. The sand averages 5700 feet deep.

Several engineering firms have surveyed South Glenrock “C” field and have reported that it contains approximately 22.5 million STB (Stock Tank Barrels, which measures the volume of a barrel of oil at the earth's surface) of OOIP (Original Oil In Place). Wyoming Oil and Gas Conservation Commission figures show that 7.7 million STB have been produced to date. Of this number, 5.2 million STB (+- 34%) were primary while 2.5 million STB (+- 11%) were secondary.  Based on the OOIP and a full field CO2 tertiary effort, we believe through field studies that an additional 20% or 4.4 million STB of oil may be recoverable. Further, because the field is currently producing, many of the well bores are usable for CO2 injection, which we believe curtails development costs.

South Glenrock "C" is currently producing 10-15 BOPD, yielding ongoing cash flow. In May 2008 Ameriwest Energy became the official operator of record, earning the rights to all production. In June 2008 the Company entered into its first oil sale and purchase agreement and effectively became a revenue-positive producer. The company believes current production could be more than doubled to 35+ BOPD in the coming months with standard workover projects, aside from the proposed CO2 injection program.