HOUSTON -  Ameriwest Energy Corp has announced the results of a reservoir study of the South Glenrock C Unit (SGCU) located in Converse County.

Ameriwest Energy has entered into a Letter of Intent in order to secure a 99.5 percent working interest in the SGCU field, a unit consisting of approximately 2,273 acres, near Casper in the southern region of the Powder River Basin. This field is currently in production and the company is working to deploy a CO2 injection program to develop an estimated 4.9 million barrels of oil. The producing prospect is geologically analogous to nearby Salt Creek field, which is currently benefiting from a successful CO2 injection program by the Anadarko Petroleum Corporation.

The study, completed by NITEC LLC, reports on the estimated remaining oil-in-place (OIP) and the estimated recoverable oil in the Lower Muddy formation under a CO2 injection program.

According to the study's base case, the estimated remaining OIP in the C Unit is 17.67 million barrels of oil (MMSTB) of which 4.9 MMSTB may be recovered from a continuous CO2 injection program over 25 years, according to detailed simulation predictions.

The SGCU is located in the extreme south-southwestern portion of the Powder River Basin on the Big Muddy Anticline about 15 miles east of Casper.

NITEC's predicted future production from a continuous CO2 program assumes a development program for the SGCU based on several factors, including the implementation of an inverted nine-spot, 160-acre pattern with a central injector, an initial well count of 18 injectors and 43 producers, requiring the drilling of three new injectors and three new producing wells. Under this scenario peak oil production may reach 2,800 barrels of oil per day (STB/D).