Ameriwest Receives Geochemical Evaluation of Skull Valley Prospect

Ameriwest Energy Corp. has received a surface geochemical prospect evaluation from Exploration Technologies, Inc. (ETI) of Houston, TX regarding the Skull Valley Prospect in Tooele County, Utah where Ameriwest has a signed Letter of Intent to acquire a 100% working interest (80% net royalty interest) for leases encompassing over 5000 acres of prospect lands with the stated intent to sign a definitive agreement within the next few weeks.

Ameriwest contracted with ETI to provide an evaluation of the surface geochemical prospect of the Skull Valley Prospect. ETI's proven techniques and technology produce a graphic, geochemical picture of the source rock and these petroleum exploration surface geochemical surveys can be used to map the light hydrocarbons expressed through microseeps from active petroleum and natural gas reservoirs at depth. The maps, developed from the survey, serve as a guide to identifying prospective areas in both frontier and mature basins. The information provided under the heading "Prospect Evaluation" is extracted from the independent Surface Geochemical Prospect Evaluation report prepared by ETI.

According to the report submitted by ETI, the prospect was first identified by geochemical surveying, conducted by the Gulf Oil Company in the 1970s. Soil gas data and contour maps from this report show that the geochemical anomalies mapped in Skull Valley are similar in composition and magnitude to those anomalies found over and adjacent to Grant Canyon field, and to the other commercial oil fields that lie within the Great Basin and Range Province.

The Grant Canyon oil field located approximately 125 miles southwest of the Skull Valley Prospect in Nye County, Nevada has been considered a type model for future oil and gas production from the Paleozoic rock formations in the eastern portion of the Great Basin and Range Province and as a model for the Skull Valley Prospect. The Grant Canyon field has produced over 20 million barrels of oil since 1983 and may ultimately produce a total of 30 million barrels.

ETI's evaluation identifies that the similarities between the structural style (slump blocks), geologic column (reservoir rocks), and geochemical anomaly between the Grant Canyon field and the Skull Valley Prospect suggest that with almost 5000 leased acres (over 2000 acres in the heart of the geochemical anomaly) a 25 million to 35 million barrel potential is a realistic possibility. Simply put, since the geology and geochemistry are so similar, ETI stated similar volumes of oil could be expected. Moreover, the geochemical anomaly at Skull Valley may have greater potential than the Grant Canyon field, because of the additional potential reservoirs in the Mississippian carbonates, perhaps even 50 million to 100 million barrels may be possible. The proximity of this prospect to Salt Lake City also enhances the potential profit from this field by decreased service and trucking costs.

Surface soil gas surveys conducted by ETI have demonstrated that the Grant Canyon field, and all of the producing fields in Railroad and Pine Valleys of Nevada, has well defined, near surface soil gas anomalies. Soil gas anomalies consisting of ethane and propane are typically associated with oil reservoirs while soil gas anomalies consisting of only methane are associated with bio-gases. The geochemical anomalies identified in Skull Valley, which contain propane and ethane, are similar in magnitude and composition to all of the other Nevada oil fields, and even exhibit compositions greater than the Grant Canyon field.