CanWest to Begin Drilling at Firebag East Oil Sands


CanWest East Firebag Area, Alberta
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Athabasca Oil Sands
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CanWest Petroleum announced further details of its Firebag East Oil Sands Project in Alberta, Canada. The Firebag East Property is the largest land holding in the Athabasca Oil Sands Region, spanning 1,400,000 acres in 60 townships (2,187 square miles). The Athabasca Oil Sands Region contains the largest hydrocarbon resource in the world estimated at 1.5 trillion barrels of oil with 310 billion barrels of recoverable oil using today's technology. The Company announced it expects to begin its exploration program on the Firebag East Property in late February 2005, which will include drilling 20 wells.

Thornton Donaldson P. Eng, President, Chairman and Director of CanWest Petroleum, stated, "CanWest's Firebag East Oil Sands Project is adjacent to and east of four world class oil sands projects with 14 billion barrel reserves and planned production of 500,000 barrels of oil per day."

Donaldson continued, "Our Company has strategically positioned itself as the controlling shareholder of a private Calgary based operating company that now holds the largest land position in the Athabasca Region. The operating company is preparing for an aggressive exploration program in February with the potential to discover a world-class oil resource of several billion barrels, which is in keeping with the Firebag area. This is truly a major achievement for an emerging-growth, junior company such as ours."

The operating subsidiary's management team is under the direction of its President, Christopher Hopkins, B. Sc., MBA. Christopher was a founding shareholder, Director and Executive VP of Synenco Energy Inc., which has a deposit in the Firebag Region with stated reserves in excess of 2 billion barrels oil and planned production of 125,000 barrels oil per day. He has 29 years experience in all aspects of oil sands exploration and development and held former senior positions with Suncor's oil sand group, Pembina Corp, and Amoco Canada.

About Firebag East Oils Sands Project

The McMurray and Wabiskaw paleochannels within the Firebag East Property contain oil, which is confirmed by previous drill hole cores and logs that show a potential pay thickness of 150 feet in the Wabiskaw formation and 58 feet in the McMurray formation with several drill hole intersections grading better than 7% oil by weight. The best oil sands grade encountered was in the McMurray formation over a 20-foot interval, which graded 9.1% oil by weight. Cut off grades for Athabasca Oil Sands production is 7% oil by weight which suggests the Firebag East Project has world-class development potential for several billion barrels of oil.

On receipt of Saskatchewan government approval within the next few weeks, an exploration program including approximately 20 wells will be drilled in the western portion of the Firebag East property within an area of known oil showings and adjacent to the proven reserves of other projects containing 14 billion barrels oil reserves. Each hole will be core sampled with a complete suite of logs run.

About The Athabasca Oil Sands

The Athabasca Oil Sands currently account for 50% of Canadian oil production and is expected to account for 70% by 2010. Canada currently supplies over 15% of all US oil imports, which will likely increase given the expected increase in oil sands production, the proximity to the United States and the security of supply.

Analysts report Athabasca Oil Reserves at 310 billion barrels of recoverable oil, with a potential for over 1.5 trillion barrels oil. As a comparison, Saudi Arabia has 260 billion barrels of recoverable oil. On discovery of reserves, analysts will currently assign 20+ cents per barrel of oil in the ground, which may rise to $2/barrel of oil in the ground at the time of production.
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