ST. JOHN'S, Aug. 26 /CNW/ - 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.