MegaWest Energy has provided an operations update for field operational activities for its heavy oil operations in Missouri.

In September 2009, MegaWest re-started steam injection at its Deerfield, Missouri property and the initial oil production response to steam injection on both the Marmaton River and Grassy Creek projects was positive.

Pumps have been upgraded, thermal and pressure data acquisition equipment is being installed, and well logs are being run to identify swept versus un-swept areas of the reservoir.

Steam injection and production have been temporarily suspended while these initiatives are being executed.

Following the resumption of production, both chemical surfactant and seismic stimulation technologies will be tested and earlier production operations achieved encouraging initial oil production rates totaling up to 300bbls per day of clean sales oil.

Phases I and II of the Marmaton River steam drive project together occupy 20 acres of project land developed as a pre-commercial project, which includes a steam generation and oil treating plant with a throughput capacity of 500 barrels of oil per day, 23 steam injection wells, 64 producing wells, and six service and observation wells.

60% of Phase II wells have been tied in with steam injection initiated in 3 of 10 patterns.

Cumulative production at Marmaton to date is more than 41,000 bbls of oil.

The Grassy Creek steam drive project has a steam injection and production treating plant similar to Marmaton River with a design capacity of 500 barrels of oil per day.

Phase I of the project consists of 46 production wells, 15 steam injection wells, and six service and observation wells occupying approximately 20 acres of the project site.

Cumulative production at Grassy Creek to date is more than 17,000bbls of oil.

It is anticipated that each of these projects could develop 250 to 300 acres of their respective 320 acres of leases over their 25 to 30 year project life.

Additional drilling phases on each of these projects will be necessary to maintain the individual project 500 barrel per day target oil production rates.