New West Energy Services Inc. (TSX VENTURE:NWE) (the "Corporation") is pleased
to announce that the Corporation has entered into an agreement with a
Calgary-based oil and gas service company to sell the operating assets of New
West Drilling Fluids Inc. ("NWDF"), a subsidiary of the Corporation, for an
aggregate purchase price of $3.4 million, subject to certain customary closing
adjustments. The full purchase price is payable in cash at closing. The
operating assets of NWDF include certain equipment, drilling fluid products,
patents including that for BITUDRIL, trademarks, license agreements and customer
lists. NWDF will retain its laboratory, receivables and tax losses. The
transaction is scheduled to close on January 25, 2012, subject to certain
customary closing conditions.


Mr. Gerry Kerkhoff, President and Chief Executive Officer of the Corporation,
explained, "We believe the proceeds from the sale can be used to add shareholder
value through growth into business verticals more in line with the Corporation's
current business model. The Corporation will be investigating acquisition
opportunities subsequent to the closing of the transaction."


For the six months ended October 31, 2011, NWDF had revenues of $2,282,542 which
represent approximately 23% of the Corporation's total revenue for the period.
Net earnings of NWDF for the same period were $60,751 which represent
approximately 7% of the Corporation's total earnings for the six months ended
October 31, 2011.


The Corporation's other major subsidiary, BearStone Environmental Solutions Inc.
("BearStone") has continued to grow since starting operations in June of 2010.
For the six months ended October 31, 2011, BearStone had revenues of $7,511,285
and net earnings of $1,006,541 which is an increase of $4,332,452 and $906,854
respectively from the same period in 2010. BearStone provides environmental
services and operates a fleet of specialized vacuum and water trucks to the
upstream oil and gas industry throughout Western Canada.


Mr. Kerkhoff added, "We will continue to look for new technologies in the
environmental field and believe the Western Canadian sedimentary basin provides
us with many opportunities to grow and diversify in the future."


The Corporation's financial statements and its Management Discussion and
Analysis can be found on www.sedar.com.


About New West Energy Services Inc.

The Corporation operates in the oil field service industry in Canada through its
wholly-owned subsidiary BearStone Environmental Solutions Inc. BearStone
provides environmental services to the upstream oil and gas industry and
operates a fleet of specialized vacuum and water trucks.
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