East West Petroleum Provides Operational on its Activities in New Zealand

East West Petroleum Provides Operational on its Activities in New Zealand 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/12/13 -- East West
Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West") is
pleased to provide the following operational update on its activities
in New Zealand. 
The Company and its partner TAG Oil Ltd. (TSX VENTURE:TAO) ("TAG")
are currently in the final stages of obtaining the necessary permits
to drill on the East Cheal permit. The rig is being moved onto
location having recently completed drilling of TAG's Ngapaeruru-1
well in the East Coast Basin. Following receipt of the drilling
permits, the first well targeting East Cheal is expected to spud in
Q3 2013 and is estimated to take two to three weeks to drill and
test. The rig will remain on location and drill a further four wells
in succession to meet the work commitments on the permit. 
East West will earn its interest in East Cheal by paying for the 100%
of the costs to drill the first two wells; East West will receive
100% of net revenues from first production until cost recovery. 
Drilling of three wells on South Cheal and one well on North Cheal is
scheduled for Q4 of this year and is expected to complete by
year-end. The total net cost to East West of the 2013 New Zealand
drilling program is estimated at C$12.4 million and is fully funded
out of East West's existing cash balance of approximately C$23
million. A summary of the 2013 New Zealand work program is provided
below: 


 
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                         # of                                               
Permit            Name  wells          Target    Gross costs  Net cost to EW
----------------------------------------------------------------------------
PEP 54877   East Cheal      5   Miocene (less  $10.5 million    $6.1 million
               (EW 30%)          than 2,500 m)                              
----------------------------------------------------------------------------
PEP 54879  South Cheal      3   Miocene (less   $6.3 million    $4.2 million
               (EW 50%)          than 2,500 m)                              
----------------------------------------------------------------------------
PEP 54876  North Cheal      1   Miocene (less   $2.1 million    $2.1 million
               (EW 50%)          than 2,500 m)                              
----------------------------------------------------------------------------
Total                       9                  $18.4 million   $12.4 million
----------------------------------------------------------------------------

 
Oil from any discoveries will be produced following the completion of
satellite facilities that will allow trucking of oil to New Plymouth
for export. Gas, if discovered will be processed following tie-in
through TAG's Cheal production facility and sold into the New Zealand
natural gas grid. Earlier this year TAG completed the expansion of
the Cheal facility to the current processing capacity of over 5,000
barrels of oil equivalent per day (http://www.tagoil.com/20130404-TAG
-Oil-Cheal-Infrastructure-Expansion-Complete.asp). 
David Sidoo, Executive Chairman of East West Petroleum, commented,
"We are very pleased to be drilling our first well in the Taranaki
Basin with our partner TAG Oil. TAG is a world class partner has
proven itself as one of the leading operators in New Zealand having
successfully encountered commercial oil with their last 25 wells in
the Taranaki, and East West is looking forward to continue working
with TAG to identify and pursue additional opportunities in New
Zealand, including reviewing available permits in New Zealand's 2013
block offer. The spudding of the first East Cheal well will be an
important milestone for East West as we enter the operational phase
in New Zealand less than one year after entering the country in the
2012 licensing round." 
About East West Petroleum Corp. 
East West Petroleum (http://www.eastwestpetroleum.ca) is a TSX
Venture Exchange listed company which was established in 2010 to
invest in international oil & gas opportunities and leveraging
management's knowledge of unconventional play technical expertise.
The Company has built an attractive platform of assets covering and
area over 1.6 million acres: Three exploration permits adjacent to
existing production in the Taranaki Basin of New Zealand with partner
TAG OIL (TSX VENTURE:TAO); four exploration concessions covering
1,000,000 acres in the prolific Pannonian Basin of western Romania
with a subsidiary of Russia's GazpromNeft; a joint venture
exploration program covering 8,000 gross acres in the San Joaquin
Basin of California; an oil-prone exploration block of 100,000 acres
in the Assam region of India with the three largest exploration and
production Indian firms ONGC, Oil India and GAIL; and a 100% interest
in a 500,000 acre exploration block onshore Morocco with conventional
and unconventional potential. 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, and in New
Zealand where the Company expects to commence drilling operations by
Q3 2013, with nine wells to be drilled this year. The Company has
adequate funds to cover all anticipated seismic and exploratory
drilling operations through 2013. 
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information. Such factors include, but are not
limited to: the ability to raise sufficient capital to fund
exploration and development; the quantity of and future net revenues
from the Company's reserves; oil and natural gas production levels;
commodity prices, foreign currency exchange rates and interest rates;
capital expenditure programs and other expenditures; supply and
demand for oil and natural gas; schedules and timing of certain
projects and the Company's strategy for growth; competitive
conditions; the Company's future operating and financial results; and
treatment under governmental and other regulatory regimes and tax,
environmental and other laws. 
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on
such forward-looking information. The Company disclaims any intention
or obligation to update or revise forward-looking information,
whether as a result of new information, future events or otherwise. 
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. 
Contacts:
East West Petroleum Corp.
David Sidoo
Chairman
+1 604 682 1558
+1 604 682 1568 (FAX) 
East West Petroleum Corp.
Greg Renwick
President & CEO
+1 972 955 7251
+1 604 683 1585 (FAX)
www.eastwestpetroleum.ca
 
 
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