East West Granted Final Approval to Commence Operation on EX-2 Tria
Concession in Romania
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/05/12 -- East West
Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West") is
pleased to report it has received final approval from the Government
of Romania to commence operations on its 1000 sq. km. (250,000 acre)
EX-2 Tria Concession in western Romania. The EX-Tria Concession was
one of four Romanian concessions awarded to the Company in a 2010
competitive exploration bid round.
Under the terms of the Tria Concession agreement with Romania's
National Agency for Mineral Resources ("NAMR"), the Company will
carry out an extensive, two-year work program which includes the
acquisition of 120 sq. km. of 3D seismic data and 200 km. of 2D
seismic data, plus the drilling of three wells. The Company has an
option to extend the agreement into Phase 2 by committing to
additional work. Earlier this year, the Company completed an
Environmental Impact Study (EIS) and an Environment Baseline Study on
the Tria block as a pre-requisite to commencing operations.
Prior to today's announcement, the Company entered into a farmout
agreement with Russia's GazpromNeft Serbian subsidiary Naftna
Industrija Srbije a. d. Novi Sad ("NIS") covering the Company's four
awarded exploration Concessions. NIS is a major oil and gas producer
and highly qualified operator in the Pannonian Basin where EX-2 Tria
is located. Under the terms of this agreement, NIS will pay 100% of
the four Concession work programs that includes drilling 12
exploration wells in the Phase 1, two-year period, at a total
estimated cost of EUR 60 million. East West will retain a 15%
participation interest and NIS will hold an 85% participation
interest in each block. East West will be carried on the work
programs through to declaration of commerciality for each discovery.
The other three concessions are expected to be ratified in 2013.
Preliminary technical work on the Tria Concession, combined with the
Company's ongoing regional Pannonian Basin studies, has revealed a
number of prospective petroleum plays on the EX-2 Tria acreage. Nine
prospects and leads have been identified which will now be analyzed
in detail, using new 2D and 3D seismic data plus other technical data
to be made available by NAMR. A seismic crew has been identified and
is expected to commence data acquisition in the 1st quarter of 2013.
Drilling is expected to commence before mid-2013.
David Sidoo, Chairman of the Company, noted, "I am very pleased to
announce that the Government of Romania has completed the process of
ratification for our Tria Concession, thereby allowing the Company to
proceed with operations. Management and the Board of Directors very
much appreciate the support demonstrated by our long term
shareholders and we are confident once drilling begins in Romania in
2013, shareholders will be rewarded."
Greg Renwick, President & CEO, also commented, "Ratification of the
Tria Concession is an excellent first step in allowing the Company to
initialize its extensive work program plans which are expected to
validate the hydrocarbon potential of this under-explored area of
Romania. NIS, with our assistance, has established and staffed an
exploration and operations office in Romania and initiated tenders
for seismic acquisition, drilling crews and logistical support. A
number of prospects and leads have already been identified and will
be prioritized for drilling in 2013."
About East West Petroleum Corp.
East West Petroleum is a TSX Venture Exchange listed company which
was established in 2010 to invest in emerging unconventional resource
plays, leveraging management's knowledge of international
opportunities and unconventional play technical expertise. In its
first 18 months of operations, the Company has built an attractive
platform of assets: an oil-prone, exploration block in the Assam
region of India with the three largest exploration and production
Indian firms ONGC, Oil India and GAIL; four exploration concessions
covering 1,000,000 acres in the prolific Pannonian Basin of western
Romania with a subsidiary of Russia's Gazpromneft; a 100% interest in
a 500,000 acre exploration block onshore Morocco with conventional
and unconventional potential and a joint venture exploration program
covering 5000 gross acres in California. The Company has also
established oil and gas production in Canada. The Company is now
poised to enter operational phases in Romania, where it will be fully
carried by its partner Gazprom-controlled Naftna Industrija Srbije in
a seismic and 12-well drilling program expected to commence in 2013.
The Company will operate geological field work and a seismic program
to firm up drilling locations in Morocco. The Company is well funded
to cover all anticipated seismic and drilling operations through
2013, with funds available to secure other exploration and/or
For more information visit website: www.eastwestpetroleum.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
East West Petroleum Corp.
+1 604 682 1558
+1 604 682 1568 (FAX)
East West Petroleum Corp.
President & CEO
+1 972 955 7251
+1 604 683 1585 (FAX)
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