CALGARY, ALBERTA, Aug 29, 2006 (MARKET WIRE via COMTEX) -- CanWest Petroleum Corporation (BQI) and its subsidiary, Oilsands Quest Inc., announce receipt of the independent geological consultants' assessment of in-place volumes of bitumen in the area covered by Oilsands Quest's Phase I drilling program in northwest Saskatchewan. The Phase I program consisted of drilling on two blocks on Oilsands Quest's Permit PS00210, located in Township 95, Ranges 24 and 25 West of the Third Meridian. The combined Original-Bitumen-In-Place (OBIP) High Estimate for the two blocks drilled is 525 million barrels. In the west block drilled, the OBIP High Estimate is 449 million barrels and is based on geological modeling that included 13 bitumen bearing drill holes. In the east block drilled, the OBIP High Estimate is 76 million barrels and is based on geological modeling that includes only 6 bitumen bearing drill holes. OBIP is the gross volume of bitumen estimated, at a particular time, to be initially contained in a reservoir before any volume has been produced and without regard for the extent to which volumes will be recovered. The OBIP estimate was based on the evaluation of cores and well log data from holes drilled in the Phase I program. The estimate, prepared by Norwest Corporation of Calgary, was made in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH), which is a primary reference for reporting resources under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The COGEH can be obtained online (www.petsoc.org). Norwest's estimate is classified as a "P10 High Estimate", which is consistent with the reporting guidelines of National Instrument 51-101 and COGEH. Norwest's OBIP High Estimate of 449 million barrels for the west block is based on extrapolation of the drilling data out to approximately 1,000 metres from the nearest drill hole. Management's OBIP estimate of 250 million barrels, which was announced on July 6, 2006, is based on extrapolation of the drilling data out to approximately 600 metres from the nearest drill hole. "The Norwest assessment is consistent with our internal numbers," said Christopher H. Hopkins, President and Chief Executive Officer of CanWest Petroleum. "It is a reflection of the confidence Norwest is able to assign to the results of our exploration program." The areas covered in the OBIP estimate represents approximately 1.4 percent of Oilsands Quest's total permit lands and are located approximately 50 kilometres (30 miles) east of Suncor's Firebag operations. Oilsands Quest's exploration permits were granted under Saskatchewan's Oil Shale Regulations, 1964, and will expire in 2009 unless converted to leases or further extensions are granted. Assumptions about the commercial viability of resource potential or whether currently commercial recovery processes will be effective cannot be determined without further drilling and analysis. Summer & Winter 2006 Exploration Plan Up to 250 test holes are planned for Oilsands Quest's summer 2006 and winter 2006 drilling programs, which will include about 100 holes in the discovery area and up to 150 holes in a larger area to identify resource leads. Updated Web Site The web sites of CanWest Petroleum and Oilsands Quest have been combined and are now updated (www.canwestpetrolem.com or www.oilsandsquest.com). About CanWest CanWest Petroleum, a public company incorporated in the State of Colorado, is engaged in a variety of projects in the oil and gas industry in Western Canada with an emphasis on oil sands and oil shale. Its lead project is an oil sands exploration program being conducted in the Province of Saskatchewan by its subsidiary, Oilsands Quest Inc. Forward-Looking Information Except for statements of historical fact relating to the companies, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements such as the estimate of OBIP, the references to Oilsands Quest's anticipated summer 2006 exploration program and winter 2006 drilling program and capital expenditures relating to, and timing of, such programs are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the oil sands industry, regulatory and economic risks, and risks associated with the company's ability to implement its business plan. There are uncertainties inherent in forward-looking information, including factors beyond Oilsands Quest's control, and no assurance can be given that the programs will be completed on time, on budget or at all. In addition, there are numerous uncertainties inherent in estimating OBIP, including many factors beyond the companies' control, and no assurance can be given that the indicated level of OBIP or the recovery thereof will be realized. In general, estimates of OBIP are based upon a number of factors and assumptions made as of the date on which the resource estimates were determined, such as geological and engineering estimates which have inherent uncertainties. The OBIP estimate for the lands described in this news release may not reflect the same confidence level as estimates of OBIP for Oilsands Quest's total permit lands, due to the effects of aggregation. Oilsands Quest has not drilled on any other areas of its permit lands to date. The companies undertake no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Cautionary Note Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the companies' operations, markets, products and prices, and including other factors discussed in CanWest Petroleum Corporation's various filings with the Securities and Exchange Commission. Cusip# 138 748 108 SOURCE: CanWest Petroleum Corporation
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