NEWS RELEASE TRANSMITTED BY Marketwired
FOR: East West Petroleum Corp.
TSX VENTURE SYMBOL: EW
MARCH 10, 2014
East West Petroleum Provides Taranaki Basin Operations Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2014) - East West
Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East
West"), is pleased to provide the following update on its operations in
the Taranaki Basin of New Zealand. The Company's joint venture partner,
TAG Oil Ltd. ("TAG"), is the operator of all licenses.
PEP 54877: Cheal North East Permit (30% EW)
Cheal-E1, E4, and E5 wells, all located on the Cheal North East Permit, are all
productive oil wells that have cumulatively produced approximately 60,000 bbls
of oil to date. East West has now recovered the initial $5 million in revenue
for its contribution of the first $5 million in costs for the initial drilling
program on the permit. Cash flow from Cheal-E1 and E4 alone is expected to fund
the Company's committed capital expenditures for the remainder of calendar
year 2014. This program includes at least one well on PEP 54876 (Southern
Cross) permit and at least one new development well on the Cheal North East
Permit following up the success to date where the Company and TAG have
established steady production and cash flow at E-site.
The Cheal-E2 well, with similar reservoir qualities as the three producing
Cheal E wells, is presently awaiting a workover that is planned for mid-March,
prior to initiating a testing program on the potential producing zone
encountered by the Cheal-E2 well. The Cheal-E3 well also encountered what the
joint venture partners believe is commercial net pay based on petrophysical
interpretation of the well log data. Data related to Cheal-E3 will be evaluated
in advance of further work being completed on the well.
PEP 54879: Cheal South Permit (50% EW)
In January / February 2014, three wells were drilled consecutively from the
Cheal-G Site on the Cheal South Permit. East West funded the first $2.5 million
in costs of a three well drilling program with both companies paying their 50%
share after the initial investment of $2.5 million. Cheal-G1 was drilled to a
total depth of 2,384 m and encountered six meters of hydrocarbon filled
reservoir rocks within the Mt Messenger Formation as expected. The well was
cased and is currently waiting on completion testing.
Both Cheal-G2 and G3 encountered hydrocarbon filled reservoir sections within
the Mt Messenger Formation, but both were interpreted to have sub-economic
thicknesses and have been plugged and abandoned. The joint venture partners
will review all results associated with the drilling program prior to
conducting future operations on the permit. All Cheal-G site wells were drilled
on time and on budget.
PEP 54876: Southern Cross Permit (50% EW)
The Nova-1 rig will now move from the Cheal South Permit to the Southern Cross
Permit in approximately two weeks to drill up to two wells on this new permit
following completion of construction of the Southern Cross well site. Southern
Cross is located immediately to the North of the Cheal North permit that
contains the Company's Cheal-E wells. All permits and consents have been
granted for drilling on the Southern Cross permit.
Director Dr. Marc Bustin Awarded the Stanley Slipper Gold Medal
The Company would like to congratulate Dr. Marc Bustin, the Company's
Senior Technical Advisor and Director, who has been awarded the 2013 Canadian
Society of Petroleum Geologists (CSPG) Stanley Slipper Gold Medal. The Stanley
Slipper Gold Medal was established in 1989 and is the CSPG's most
prestigious award and recognizes outstanding contributions to petroleum
exploration in Canada.
"We are pleased with the continued progress to date in New Zealand,"
said David Sidoo, CEO and President of East West Petroleum. "Gross
production from the Cheal E site continues to grow with three wells now having
produced commercial oil, and with testing continuing at the Cheal E and G sites
and the upcoming Southern Cross well we expect further increases to production
and cash flow over the next several months. Following completion of the current
nine well program in the Taranaki Basin, we will work with TAG to identify
further prospects in the joint venture permits to be drilled later this year.
We are also paying close attention to the results from the East Coast Basin as
we have a 40% interest with TAG in over 100,000 acres with the PEP 55770 permit
which was awarded in December. We are in the early stages of determining the
potential of our properties in New Zealand having gone from exploration to
production within the past six months, and look forward to the upcoming results
from the busy year ahead. I would also like to extend my congratulations to Dr.
Bustin for receiving such a prestigious award."
Added Dr. Marc Bustin, "The initial results from the eight exploration
wells drilled to date are encouraging as they demonstrate the extension of
hydrocarbons in the greater Cheal area. These results will help to further
define already identified leads and prospects located on our acreage and in the
planning of the next phase of drilling."
About East West Petroleum Corp.
East West Petroleum (http://www.eastwestpetroleum.ca) is a TSX Venture Exchange
listed company established in 2010 to invest in international oil & gas
opportunities. East West has built a diverse platform of attractive exploration
assets covering a gross area of approximately 1.8 million acres. In New
Zealand, East West holds an interest in three exploration permits near to
existing commercial production in the Taranaki Basin with a nine well drilling
campaign, operated by TAG Oil Ltd. (TSX: TAO), is in progress; in December
2013, the Company was awarded one block in the emerging East Coast Basin of New
Zealand when covers over 100,000 acres. The Company also has interests in four
exploration concessions covering 1,000,000 acres in the prolific Pannonian
Basin of western Romania with Naftna Industrija Srbije ("NIS"); 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. The Company has now entered operational
phases in Romania, where it will be fully carried by its partner NIS in a
seismic and 12-well drilling program which is underway.
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.
Prospective Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective resources have both an
associated chance of discovery and a chance of development. Prospective
Resources are further subdivided in accordance with the level of certainty
associated with recoverable estimates assuming their discovery and development
and may be subclassified based on project maturity. Best estimate resources are
considered to be the best estimate of the quantity that will actually be
recovered from the accumulation. If probabilistic methods are used, this term
is a measure of central tendency of the uncertainty distribution (most
likely/mode, P50/median, or arithmetic average/mean). As estimates, there is no
certainty that any portion of the resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to produce any
portion of the resources that the estimated reserves or resources will be
recovered or produced.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
East West Petroleum Corp.
Corporate Development Manager
+1 604 682 1558
+1 604 682 1568
INDUSTRY: Energy and Utilities - Oil and Gas
-0- Mar/10/2014 12:30 GMT
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