East West Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West"), is
pleased to provide the following operational update on its activities in the
Taranaki Basin of New Zealand. All of the wells are operated by joint venture
partner TAG Oil Ltd. ("TAG").


Cheal E-site update (30% EW)

The Company has been informed by TAG the initial five well drilling program at
the Cheal-E site on the Cheal North permit (PEP 54877) was successfully
completed in mid-December. Cheal-E1 has been naturally flowing, 17/64" choke,
for 44 days and has produced at an average of 547 boe/d (88% oil) while Cheal-E4
has been naturally flowing, 10/64" choke, for seven days and has produced an
average of 315 boe/d (87% oil); both wells having produced in aggregate more
than 23,100 barrels of oil to date (26,400 boe). 


Following perforation, Cheal-E2 and Cheal-E3 tested oil naturally to surface and
will require artificial lift to maximize production as expected. This work, in
addition to the perforation and completion of Cheal-E5 will be initiated in the
second half of January as equipment becomes available. As required work is
completed, Cheal-E site wells will be tied in for permanent production at TAG's
recently commissioned Cheal-E site separation facilities.


Pending completion of the outstanding activities at E-site and further analysis
of all results, the joint venture estimates there is potential for 15 - 20
follow-up locations on the permits awarded in December 2012.


Under the joint venture agreement, the Company paid 100% of the first $5 million
of initial drilling costs of the first two Cheal-E wells and is entitled to
recover the first $5 million in revenue from Cheal-E Site sales while also
paying 100% of the costs to produce that revenue. Subsequently all cash flow and
operations will revert to 30% East West and 70% TAG. Payout is forecast to occur
in less than two months at current production rates.


Cheal G-site update (50% EW)

With the conclusion of the Cheal E-Site drilling program, the Nova-1 rig was
moved to the Cheal G-site where Cheal-G1 was spudded on January 3, 2014 kicking
off a three well drilling program on the Cheal South permit (PEP 54879). The
Company will fund the first $2.5 million in capital expenditure, and is entitled
to receive the first $2.5 million in revenue sales while also paying 100% of the
costs to produce that revenue, following which costs and interest in the wells
will revert to 50% East West and 50% TAG.


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. The Company also interests
in 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. The Company has now entered 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 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.
Chris Beltgens
Corporate Development Manager
+1 604 682 1558
+1 604 682 1568 (FAX)
www.eastwestpetroleum.ca

East West Petroleum (TSXV:EW)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more East West Petroleum Charts.
East West Petroleum (TSXV:EW)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more East West Petroleum Charts.