East West Petroleum Provides Taranaki Basin Operations Update
January 09 2014 - 3:38PM
Marketwired
East West Petroleum Provides Taranaki Basin Operations Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 9, 2014) - 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.
East West Petroleum Corp.Chris BeltgensCorporate Development
Manager+1 604 682 1558+1 604 682 1568www.eastwestpetroleum.ca
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