CALGARY, ALBERTA--(Marketwire - April 16, 2010) -

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

PanWestern Energy Inc. ("PanWestern" or the "Corporation") (TSXV:PW) is pleased to announce that it has closed its previously announced private placement of 51,100,000 special warrants at a price of $0.47 per special warrant for aggregate gross proceeds of $24,017,000 (the "Offering"). The Offering was underwritten by a syndicate of underwriters co-led by National Bank Financial Inc. and Cormark Securities Inc. and including GMP Securities L.P., Canaccord Financial Ltd. and FirstEnergy Capital Corp. PanWestern intends to use the net proceeds for its 2010 drilling program and general corporate purposes.

Each special warrant entitles the holder thereof to receive, without the payment of any additional consideration, one common share of the Corporation on the exercise or deemed exercise of the special warrant. The special warrants are exercisable by the holders thereof at any time and will be automatically exercised at 5:00 p.m. (Toronto time) on the earlier of the following dates: (i) the fifth business day after the date evidence of a receipt is issued by the securities regulatory authorities in the provinces of Alberta, British Columbia, Saskatchewan and Ontario for a final prospectus qualifying the common shares to be issued upon the exercise of the special warrants; and (ii) August 17, 2010. In the event the Corporation fails to obtain all required receipts for the final prospectus by May 31, 2010, each special warrant will entitle the holder to acquire 1.1 common shares on exercise or deemed exercise thereof.

PanWestern currently has approximately 145.7 million common shares outstanding. Assuming each special warrant is converted to one common share of the Corporation as contemplated, it is expected that there will be approximately 196.8 million common shares of the Corporation outstanding.

PanWestern also announces that it has filed with Canadian securities regulatory authorities the information concerning reserves data and other oil and gas information as at December 31, 2009 required to be provided under National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Copies of these documents may be obtained electronically from the SEDAR system at www.sedar.com.

About PanWestern

PanWestern Energy Inc. is a Calgary, Alberta based public company engaged in the exploitation, development and production of petroleum and natural gas. The Corporation's common shares are listed on the TSXV under the trading symbol "PW".

Forward Looking and Cautionary Statements

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "expect", "intend", "estimate" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, information with respect to: the use of proceeds of the offering. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although the Corporation believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because the Corporation can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things: the timely receipt of any required regulatory approvals; the ability of the Corporation to obtain equipment and services in a timely and cost efficient manner; future oil and natural gas prices; the state of the capital markets; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of the Corporation to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Corporation and described in the forward-looking information. The material risk factors affecting the Corporation and its business are similar to those of other companies engaged in the business of exploring for and producing oil and gas, both domestically and in foreign countries. Additional information on these and other factors that could affect the Corporation's results are included in the Corporation's securities filings with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.