MegaWest Energy Corp., an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, acquires the Devils Basin play in Montana.

MegaWest has added the Devils Basin play to the existing Teton and Loma plays in its Montana focus area. MegaWest’s acreage includes demonstrated light oil production from the Heath Shale from vertical wells. Upon completion of acquisition earning ($150,000 cash, 100,000 shares of MegaWest, and a carry of its partner’s 25% working interest cost for the first well), MegaWest will own 6015 net acres (75%) of the 7260 acre play. Seismic will be used to identify prospective drill locations and MegaWest plans to test the play with a horizontal well.

Field work is already underway for the acquisition of new 2D seismic over MegaWest’s existing Teton and Loma plays. Interpretation of this seismic should lead to the drilling of a number of wells to test the plays. The Company will evaluate the reservoir at Teton for potential development through the application of SAGD, steam drive or cyclic steam stimulation. It is hoped that drilling of the Loma play will prove up a light oil discovery.

MegaWest’s experienced management seeks to prove up significant resources and achieve early production from its world-class suite of operated heavy oil properties. MegaWest owns or has the right to earn an interest in over 125,000 acres in Missouri, Kansas, Kentucky, Montana and Texas. MegaWest’s strategy for growth is underpinned by three converging market factors; the need for security of energy supply in North America, the current high world oil price, and the new technical developments in commercial thermal recovery of heavy oil. MegaWest plans to establish proven and producing unconventional heavy oil reserves in each of its core areas through delineation drilling and the completion of enhanced recovery production projects.