MegaWest Energy Corp., declares the start of steam injection and production operations at its Deerfield, Missouri Project by its wholly-owned subsidiary, MegaWest Energy Missouri Corp. MegaWest is embarking on the first phase of commercial production of heavy oil from the Warner sandstone in Vernon County, southwest Missouri.

The Company’s existing land position includes a 100% working interest in over 10,000 acres of leases in Missouri and will support multiple projects, so this project will be referred to as the Marmaton River Project - Phase I.

MegaWest’s experienced team of enhanced oil recovery specialists have completed the design, licensing, construction and drilling of the steam-flood with thirteen inverted 7-spot patterns (six oil production wells surrounding each steam injection well) on a total area of 10 acres. This steam-flood process has proven very successful on numerous projects with similar types of deposits throughout Canada and the USA.

A 50 million BTU/hr steam generator has been installed along with production treating vessels and tanks capable of processing up to 500 barrels of oil per day. As part of the project implementation, MegaWest has drilled and completed 40 production wells, 13 injection wells, 1 source water well, and 1 water disposal well. This project has been completed in less than five months and on budget, with the total estimated capital expenditure to construct and commission the facility and wells at US$ 3.6 million.