GulfWest Drills Its First Horizontal Well in Glen Rose Fld

GulfWest Energy has finished drilling its first horizontal well in the Glen Rose natural gas formation in Grimes County, Texas. The Hassler #1h well was drilled to a total depth of 14,063 feet. In this area of East Texas, the Glen Rose formation is typically a natural gas-bearing, fractured carbonate rock located approximately 11,200 feet below the surface. GulfWest re-entered a well previously abandoned by a former operator, deepened the well vertically 1,200 feet and horizontally drilled 2,200 feet in the Glen Rose formation.

While drilling the horizontal section of the well, the Company encountered a number of fractures containing natural gas. Horizontal wells of this type are typically drilled in a controlled fashion allowing the natural gas to be brought to the surface and flared during drilling, a technique that reduces damage to the reservoir from the drilling process.

GulfWest is currently completing the Hassler #1h well and plans to have the well on-line in early January 2005. The drilling rig will move immediately to drill a second well in the area. GulfWest has a 75% working interest in the field and its partners, Summit Investment group, have a 25% working interest.

The re-entry of the Hassler #1h is another example of GulfWest applying various enhancement technologies to develop previously abandoned domestic natural gas and oil reserves. The Company plans to continue these efforts in 2005.