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News Release

FOR IMMEDIATE RELEASE

EUB ISSUES DECISION ON WEST ENERGY SOUR OIL WELL APPLICATIONS

Calgary, Alberta (Wednesday, August 8, 2007) The Alberta Energy and Utilities Board (EUB) has issued Decision 2007 - 061 that grants conditional approval for West Energy Ltd. to drill two sour crude oil wells near Rocky Rapids.

In its decision, the EUB has imposed 10 conditions on West Energy Ltd. that will address public concerns raised during an 11-day hearing that took place in Drayton Valley and concluded on May 14, 2007.

With the conditions, the EUB considers these wells to represent a low level of risk when failure probability, mitigating measures and enhanced emergency response plans are taken into account.

Conditions imposed by the EUB include:

• West Energy Ltd. must update and amend its Emergency Response Plan in accordance with the decision and subsequently undergo a further EUB assessment.
  
  
• West Energy Ltd. must conduct a comprehensive Emergency Response Plan exercise under the review of EUB staff. The exercise will include specific requirements and must be completed and approved by the EUB prior to the commencement of critical sour operations.
  
  
• If West Energy Ltd. is unable to conduct an Emergency Response Planning exercise to the satisfaction of the EUB after two attempts, the well licenses will be suspended and no further drilling operations into the critical sour zone will be permitted.
  
  
• West Energy Ltd. must complete an additional egress road prior to drilling that will enhance public safety.
  
  
• West Energy Ltd. must gain EUB approval if flaring operations will last longer than eight hours and area residents do not agree to an increase in flaring duration.

Additionally, the EUB determined that West Energy Ltd.'s communications and consultation program requires improvement and has identified specific areas of attention.

The EUB ensures that the discovery, development, and delivery of Alberta's energy resources and utility services take place in a manner that is fair, responsible, and in the public interest.

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This decision can be found on the EUB web site at www.ercb.ca  

For more information, please contact:

Darin Barter, EUB Communications
Phone: 403-297-4116
Cellular: 403-681-0946
Email: darin.barter@eub.ca

NR2007-33