August 4, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — MegaWest Energy Corp., (OTCBB: MGWSF) said that it has closed a series of transactions with a group of its existing shareholders that will provide $2.5 million in new funding.

The series of transactions consists of the issuance of $2.5 million in senior secured convertible notes, the conversion of the company's series A preferred shares into junior secured convertible notes and the reacquisition by MegaWest of a 10% working interest in the company's Marmaton River and Grassy Creek heavy oil projects in exchange for a 2.75% overriding royalty interest on the same properties.

MegaWest said it will use the proceeds of the notes financing to fund a portion of the company's capital expenditures and operating expenses for its fiscal year ending April 30, 2011.

Canada-based MegaWest is an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil with particular emphasis on the Deerfield area of western Missouri.

The company has two individual 320-acre steam injection projects in the Deerfield area with around 20 acres developed on each of the Marmaton and Grassy projects.

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