Cusip: #585168 107
MegaWest Signs $1.0 Million Natural Gas Purchase Line of Credit Agreement
Calgary, Alberta; May 14, 2010 - MegaWest Energy Corp., (the “Company” o r “MegaWest”),
(OTCBB:MGWSF) is very pleased to announce that it has entered into a $1.0 million line of credit agreement
for the purchase of natural gas while heavy oil production ramps up.
Natural Gas Purchase Line of Credit
The Company has entered into a Natural Gas Purchase Line of Credit Agreement (the “Credit Agreement”) with
a private lender for a line of credit for the sole purpose of buying natural gas to fuel the Company’s steam
generators on its Marmaton River (“Marmaton”) and Grassy Creek (“Grassy”) steam flood heavy oil projects.
To date, the Company has drawn funding in the amount of $475,000 under the Credit Agreement for natural gas
purchases in April and early May 2010. Management anticipates that this Credit Agreement will be utilized for
three to four months and it will be terminated when it is no longer required.
The essential terms of the Credit Agreement are as follows:
Maximum Borrowing: Up to $US1.0 million.
MegaWest is an independent oil and gas company, specializing in non-conventional oil and gas projects with a
focus on North American heavy oil with particular emphasis on the Deerfield area of western Missouri. The
Company has two individual 320 acre steam injection projects in the Deerfield area with approximately 20 acres
developed on each of the Marmaton and Grassy projects. In the Deerfield area, excluding the 40 acres of
developed land, the Company has an operated 90% working interest in over 15,400 acres of undeveloped land
prospective for heavy oil development and has identified a number of additional potential steam injection projects
on this land base. In total, including the Deerfield Missouri acreage, the Company owns a 61% operated working
interest in 113,000 acres of undeveloped land prospective for h