ST. JOHN'S, NEWFOUNDLAND -- (Marketwire) -- 10/12/12 -- NWest Energy Corp. ("NWest" or the "Corporation") (TSX VENTURE:NWN) announces that it has been served with a statement of claim by Geophysical Services Incorporated ("Geophysical") relating to the transfers of exploration licence EL1097R to Shoal Point Energy completed on January 17, 2012 and March 23, 2012. Geophysical is seeking damages of $1,951,811.50. Management believes the claim to be frivolous towards the Corporation and without merit. The Corporation intends to fully defend its interests and take all other actions available to it and will provide a further update once additional information is available.

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