May 2, 2007
Calgary, Alberta; April 20, 2007 – MegaWest Energy Corp., (the “Company” or “MegaWest”), a Calgary based oil and gas company (OTC BB: MGWSF) (Cusip: #585168 107), specializing in non-conventional oil and gas projects with initial focus on North American heavy oil, announces the acquisition of the Trinity Sands non-conventional oil and gas project where MegaWest will earn a 66.67% working interest in 28,300 acres.
MegaWest will complete a detailed geological study of the Trinity Sands and a core drilling program. This will be followed by a two-well production test and a pilot recovery project prior to initiating commercial production.
The Company’s President and CEO, George Stapleton stated; “MegaWest has completed another significant step with the acquisition of Trinity Sands Energy LLC and will work to capture the tremendous potential of the Trinity Sands opportunity. MegaWest will continue to acquire large blocks of oil and gas rights known to contain substantial deposits of heavy oil or other non-conventional oil.”
MegaWest, through its wholly-owned subsidiary MegaWest Energy USA Corp. (“MegaWest USA”) has acquired all of the issued and outstanding membership units of Trinity Sands Energy LLC, a Delaware limited liability company (“TSE”) for a consideration of $200,000 USD plus the issuance of 95,000 Exchange Shares of MegaWest USA; each Exchange Share may be exchanged for $10 USD cash or 100 common shares of MegaWest during the period January 1, 2008 to July 31, 2008. After July 31, 2008, the company may compel the holders of Exchange Shares to convert their Exchange shares to common shares of MegaWest at the same 1 for 100 ratio. The assets of TSE consist of a 50% working interest in 14,948 net mineral acres in Edwards County, Texas and an Earn-In Agreement to increase said working interest to 66.67%; Earn-In Agreements whereby TSE may earn up to a 66.67% working interest in an additional 13,348 net mineral acres in Edwards County; and 7.5 million common shares of Energy Finders, Inc.
MegaWest has not released and will not be releasing estimates of resource or reserves related to this project until such time as an independent third party resource evaluation is complete.
ON BEHALF OF THE BOARD OF DIRECTORS
George T. Stapleton, II, President & Director
For further information please visit the Company’s new website at www.megawestenergy.com or, contact:
| Kelly Sledz 1.403.984.6342 info@megawestenergy.com |
Mike Parker 1.888.506.7979 MParker@sweetwatercapital.net |
Forward-Looking Statement Disclaimer
This news release contains “forward-looking statements”. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, that (i) the Company will acquire and exploit non-conventional oil and gas properties in Western North America, (ii) the Company will develop its heavy oil opportunities, (iii) the Company will establish proven and producing reserves this year, and (iv) the Company will be successful in recovering oil for any of its future prospects.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the failure to complete the acquisition of the shares of Trinity Sands Energy LLC and/or the Membership Units of Kentucky Reserves, LLC for whatever reason, (ii) the failure to complete the acquisition of the assets from Deerfield Energy LLC for whatever reason, (iii) the continued demand for oil and gas, (iv) the failure by the Company and others to identify and acquire other oil and gas prospects, (v) the failure to raise any proceeds necessary to complete any acquisitions of any other oil and gas prospects, (vi) the uncertainty of the requirements demanded by environmental agencies, (x) the Company’s ability to raise debt or equity financing for operations, (xi) the Company’s ability to maintain qualified employees or consultants, and (xii) the likelihood that no commercial quantities of oil and gas are found or recoverable on any properties in which the Company has an interest. The risks and uncertainties that could affect future events or the Company’s future financial performance are more fully described in the Company’s quarterly reports (on Form 6-K filed in the US and on Form 51-102F1 filed in Canada), the Company’s annual reports (on Form 20-F filed in the US and Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada.