MCW ENERGY GROUP SUCCESSFULLY CLOSES 3 MILLION USD GROWTH FINANCING FOR DEVELOPMENT OF ITS OIL SANDS PROJECT IN ASPHALT RIDGE, UTAH

June 14th, 2011: Shediac, Canada: MCW Energy Group Ltd. ("MCW"), an oil distribution and production company, is pleased to announce that an offering of convertible debt has been successfully placed with a group of well-established investors from Hong Kong and North America, facilitated by the lead investment group, Pacific Seaboard Ltd. of Hong Kong. The notes are carrying an annual coupon rate of 7 percent and are convertible at the current price of MCW common shares.

The Company raised gross proceeds of 3.0 million USD in this private placement, which will be utilized in MCW’s oil sands development program in Asphalt Ridge, Utah.

David Sutton, Chief Executive Officer of MCW said, “We’re very pleased that Pacific Seaboard and its group of co-investors have fast-tracked their investment decision on MCW’s private placement, which will provide us with sufficient liquidity to initiate the development of our oil sands program. Thanks to this strengthened capital base, we’ll be able to move forward immediately with the fabrication of our initial oil extraction plant, as well as the development of our oil sands project.”

The forward progress of the Company’s oil sands resource includes the implementation of oil extraction technology, an environmentally-friendly, closed-loop system utilizing benign solvents which are circulated and recycled within the continuous flow/feed system. The technology requires no water in the extraction process, emits no greenhouse gases and is capable of extracting up to 98 percent of hydrocarbons.

The Company plans to immediately commence the fabrication of its first scalable, mobile oil extraction unit in order to develop its oil sands lease in the prolific Asphalt Ridge region of Utah, which contains a proven resource of 50+ million barrels of oil, confirmed by studies by the U.S. Department of Energy (USDOE) and recently verified in an independent consultant’s evaluation performed by Chapman Petroleum Engineering Ltd. of Calgary, Alberta.

The Chapman Report estimated recoverable bitumen volumes of 13 MMSTB in the Low Case (Worst Case scenario) (20.2 MMSTB in place), 20 MMSTB in the Best Case (30.4 MMSTB in place), and 30 MMSTB in the High Case (55.6 MMSTB in place.) A recent core sample from the Asphalt Ridge sandstone structure has a published analysis of 13.4 percent bitumen content with an API gravity of 14.3. Over 90 percent of the lease geology has been confirmed and estimates of the approximate resource size/overburden are based on published information and publicly-available data, including reports from the USDOE.

The Chapman evaluation also indicated a reasonable level of production costs on the lease utilizing MCW’s proprietary oil sands extraction technology, with costs estimated to be in the range of 30.25 USD per barrel, based on the minimum daily production range of 250 barrels a day from the Company’s first oil extraction plant.

MCW is currently working with Chapman Petroleum Engineering to incorporate its current evaluation into its NI 51-101 documentation which will be issued upon completion. When this step is completed, the Company will apply for an additional listing on a Canadian Stock Exchange.

The information does not constitute an offer of or an invitation by or on behalf of MCW Energy Group or any of its subsidiaries to subscribe for or purchase securities of MCW Energy Group or any of its subsidiaries, but is provided as a matter of record only.
In particular, the information contained does not constitute an offer of securities for sale or solicitation of an offer to buy securities in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

About Pacific Seaboard Ltd:
Pacific Seaboard Ltd. is an international investment firm providing advisory services and capital-raising solutions for a wide variety of emerging companies around the world. Pacific Seaboard works with blue chip companies and syndicates opportunities to prominent institutional investors in Europe and Asia. The Company specializes in unique opportunity emerging markets. Pacific Seaboard’s structure includes investment banking, asset management, the Pacific Venture Fund, merchant banking and factoring financing. Since its inception, the Company and its affiliates have raised over 700 million USD, and have pioneered a number of international investment strategies in the emerging marketplace, including Small Caps, Short Duration Bonds and Forex.

About MCW Energy Group:
MCW Energy Group is a Canadian holding company with two principal portfolio companies: the California-based McWhirter Distribution Company, established in 1938, a leading distributor of branded and unbranded gasoline and diesel products throughout the United States, and MCW Oil Sands Recovery, LLC, an oil sands extraction technology company based in Utah, which is focusing on providing a new source of domestic oil from America’s virtually untapped oil sands resources. With an ongoing production of oil from its oil sands leases, the Company intends on becoming a profitable supplier of oil to several regional refineries. This new revenue stream will provide strategic leverage for MCW through direct control of oil pricing and supply within its core distribution network.

For more information, please visit the corporate website: www.mcwenergygroup.com

Press Contact:
MCW Energy Group
334 Main St., Suite 101
Shediac, NB, E4P2E5 Canada
Tel.: 001 (800) 979-1897
Fax: 001 (866) 571-9615
Mail: info@mcwenergygroup.com

fr financial relations gmbh
Jörn Gleisner
Tel.: +49 (0)69 95 90 83 20
Fax: +49 (0)69 95 90 83 99
Mail: j.gleisner@financial-relations.de

This release was published on openPR.