SKW Skywest Energy Corp

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES 


SkyWest Energy Corp. (TSX VENTURE:SKW) ("SkyWest" or the "Company") is pleased
to announce that it completed the acquisition (the "Acquisition") of a private
company ("Privateco") as previously announced in the Company's press releases
dated November 8, 2010 and December 3, 2010, for a combination of cash and
SkyWest Shares. The total consideration for the Acquisition was $20,661,495
including the issuance of 19,309,808 SkyWest Shares. Including transaction costs
and the assumption of $3.26 million of net debt of Privateco (as of September
30, 2010), the total consideration was approximately $23.9 million. The
completion of the Acquisition is subject to receipt of final approval of the TSX
Venture Exchange. 


As of the closing date of the Acquisition, Privateco's production was
approximately 520 boepd. In addition, Privateco has a total of 7.25 gross (5.0
net) sections of lands located in the Pembina Cardium fairway, on which
Privateco has recently participated in 4 successful Cardium horizontal wells.


An independent director of SkyWest is a director, officer and shareholder of
Privateco. The Chief Financial Officer of SkyWest is a shareholder of Privateco.


SkyWest is also pleased to announce that it has closed the second tranche of the
previously announced private placement by issuing 3,627,000 common share special
warrants ("Special Warrants") at a price of $0.52 per special warrant for gross
proceeds of $1,886,040 (together with the first tranche of the private placement
offering, the "Offering") pursuant to the full exercise of the Underwriters'
over-allotment option. Wellington West Capital Markets Inc., acted as lead
underwriter for the Offering, together with Haywood Securities Inc., FirstEnergy
Capital Corp. and Desjardins Securities Inc. Each Special Warrant issued
pursuant to the second tranche of the Offering will entitle the holder to
acquire one common share SkyWest (a "SkyWest Share") without payment of
additional consideration at any time on or before April 17, 2011, provided that
if SkyWest does not receive a receipt for a prospectus in all filing
jurisdictions by December 31, 2010, each Special Warrant will entitle the holder
to acquire 1.1 common shares on exercise or deemed exercise thereof. The
completion of the Offering is subject to receipt of final approval of the TSX
Venture Exchange.


SkyWest used a portion of the net proceeds from the Offering to fund the
Acquisition of PrivateCo which also closed today and expects to use the
remaining net proceeds to fund ongoing exploration and development activities
and for general corporate purposes.


SkyWest Energy Corp. is a Cardium focused exploration and production Company
based in Calgary, Alberta, Canada.


The securities offered have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the registration
requirement. This media release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there by any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful.


Cautionary Note Regarding Forward-Looking Statements 

Statements herein that are not historical facts may be considered forward
looking statements including the expected use of the net proceeds of the
Offering, the results of the Company's exploration and development activities,
the performance characteristics of Privateco's assets, the impact of the
Acquisition on the Company's operations, inventory and opportunities, financial
condition, access to capital and overall strategy, management's assessment of
future plans and operations, growth expectations within the Company, expected
initial production rates from certain new wells, timing of completion of wells
and of production additions, expected size of various plays, construction or
expansion of facilities and the timing thereof and expected costs and the
effects thereof, drilling plans and the effects thereof.


Readers are cautioned that the foregoing list of factors and assumptions is not
exhaustive. Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and SkyWest does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.


BOEs

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be
misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:
1 Bbl is based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the wellhead.

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