NWest Energy Inc. is pleased to announce the results of its Exploration 3D seismic interpretation.

8/26/2009

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.  The current E3D seismic data has covered less than 10% of the 1.6 million acres held 100% by the Company.

After all the work that has been carried out over the last several years, we believe that western Newfoundland represents an attractive exploration region. Our prospect and leads lie within an active petroleum system that contains proven source rocks.  The NWest acreage is a rare opportunity for the development of hydrocarbons which are close to shore in relatively shallow water depths, near North American markets and with a stable fiscal environment.  Due to the positive result of the seismic interpretation, NWest is commencing a farm-out marketing campaign to find a joint-venture partner who shares our vision of making a commercial hydrocarbon discovery offshore western Newfoundland .“

Capitalized terms related to resource classifications used in this press release are based on the definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook ("COGEH").

Undiscovered Resources those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, they may not be economically viable or technically feasible to produce.

Prospective Resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations. Prospective Resources have both an associated chance of discovery and a chance of development. If discovered, they would be technically and economically viable to recover. However, there is no certainty that the Prospective Resources will be discovered.

About NWest Energy

NWest Energy is a Canadian junior oil and gas company exploring high-margin frontier basins.  Through its exploration licenses, NWest holds approximately 1.6 million acres of highly prospective property in a geologically favourable environment for exploration offshore western Newfoundland.  To date, NWest has completed an initial evaluation of the exploration licenses and an exploration seismic program.  Further information regarding the company and its exploration licences is available at www.nwestenergy.com.

About GEOSEIS

GEOSEIS Inc. (www.geoseis.ca), a GG&E consulting and technology services company, provides interpretation, mapping and project management services to Canadian and International clients with emphasis on upstream exploration, development and assessment of oil and gas projects. 

Contact: info@nwestenergy.com

Robert D. Webb,
Interim President & Chief Executive Officer
709.722.3959

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company.

There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.