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New Western Energy Corp. (NWTR) Upgrades Swenson #1 To Increase Capacity, Texas Regional Hydrocarbon Strategy Comes Into Focus

|Includes: New Western Energy Corp (NWTR)

New Western Energy has assembled an impressive acreage position across some of NA's hottest hydrocarbon regions (including Kansas, Oklahoma, Pennsylvania, and Texas), constantly advancing the portfolio towards a larger and larger production envelope of oil, gas, and other minerals, and reported the start of a new drilling program down in Texas at their Swenson Lease today, geared primarily to expand on existing production.

President of NWTR, Javan Khazali, noted the one week window estimated to complete the workover program and hailed today's announcement as another step towards realizing the full potential of the substantial acreage position built up in Texas by the company over the last year.

Swenson is a key part of a larger regional strategy by NWTR to secure a sizeable production platform in the Jones County area. The company's adjacent Reves and McLellan leases, together with the Swenson, represent some 405-acres of prime territory in the heart of a region studded with productive wells, including the large Griffin Field (0.75 miles to the west) and the Iron Mountain/Avoca Pool Field (just 0.5 miles to the northeast), which have produced a combined 19.6M bbls to date.

The goal of the new work at Swenson will be to realize greater capacity in the Swenson #1 by deepening the well to 2,050 feet and running a treatment, thus increasing throughput from the pay zone. Since hitting the Swastika Sand target at Swenson back in the middle of 2011, the company has pulled roughly 2.6k bbls from the formation and the deeper Swenson #1 should amp up output nicely after work is completed.

We have a rich variety of formation targets accessible via the three leases, ranging from the Swastika Sand, to the Flippen Sand and Gunsight Lime, with formation depths of between 1k to 3k feet. In addition, we have the Moran Sand (sandstone channels) at 1.9-2k feet, Caddo Limestone at 3.6-3.8k feet, Mississippian Limestone at 3.8-3.9k feet, and Ellenberger at 4k-4.25k feet targeted by the company's approximately 680-acre Moran Lease over in Shackelford County. Also in Shackelford is the roughly 580-acre Trice Lease, which has good footing for the King Sand formation at shallow depths of only 500-700 feet.

This data offers better context for today's announcement and should clearly show investors NWTR's hand, as the some 223.3k bbls in reserves (at 35% recovery on an estimated 744.8k bbls according to the independent geologist's 2011 report) represented by the three Jones County leases is chief among the company's Texas holdings and the ramped up drilling is part of an aggressive drive to maximize production in the region as a whole.

Khazali emphasized the potential of the sand and rock formations that fall within the purview of the company's Texas Leases and assured shareholders that NWTR would take every step possible to generate mounting ROI via rigorous exploitation of the extremely favorable hydrocarbon characteristics in these formations. Activity in the workover program will be carried out by the company's wholly-owned subsidiary Royal Texan Energy Co. and anticipation runs high at Swenson that recovery efforts will be significantly enhanced by this new activity.

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