East West Petroleum Announces Financial Results for the 15 Months Ended March 31, 2014
July 21 2014 - 8:30AM
Marketwired Canada
East West Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West"), is
pleased to announce its financial and operating results for the 15 months ended
March 31, 2014. Copies of the Company's audited financial statements, management
discussion and analysis, and information pursuant to National Instrument 51-101
- Standards for Disclosure for Oil and Gas Activities have been filed with the
Canadian Securities Administrators and are available electronically at
http://www.sedar.com. For additional information, please visit East West's
website at http://www.eastwestpetroleum.ca.
David Sidoo, President and CEO of East West commented, "The past year has been
transformational for East West. Not only did the company drill its first
exploration wells in New Zealand, it also achieved first commercial production
and cash flow, demonstrating the potential of our acreage. Over the next 12
months, we are looking forward to continuing to work with our partner in New
Zealand, TAG Oil Ltd., to further grow our reserves and production base on our
joint acreage where a number of future drilling locations have been identified
as a result of the recent exploration program. In Romania, our partner NIS is
continuing with 2D and 3D seismic acquisition and interpretation in preparation
for the start of the 12-well exploration program in 2015. With these important
milestones achieved, the Company is well positioned for growth from its existing
cash balance and cash flow through the upcoming year."
Operating and Financial Highlights
-- Three wells currently on permanent production, testing pending on one
additional well, and one well awaiting rework.
-- First production achieved in November 2013, with two further wells
onstream in the first quarter of 2014.
-- From inception in November 2013 through March 2014, production averaged
414 b/d, which benefitted from the Company receiving 100% of the first
$5 million in revenue from the Cheal E-site under the joint venture
agreement with TAG Oil.
-- Average price per barrel received for oil sales during the January to
March 2014 period was US$107.57. Netback to the Company after royalties,
transportation and storage, and production costs was US$83.78/b
-- Production in May and June averaged approximately 180 b/d and 200 b/d,
respectively, net to East West.
-- All licences now ratified in Romania and seismic acquisition progressing
in advance of the 12-well exploration program, all of which to be fully
funded by NIS.
-- East West had $10,966,215 in working capital as of March 31, 2014 with
no debt and 93,108,665 shares outstanding.
-- The Company's independent qualified reserves evaluator, in accordance
with NI 51-101 and the COGE Handbook, assigned the following reserves to
the Company's assets in New Zealand as of March 31, 2014:
----------------------------------------------------------------------------
Reserves Light and Natural Gas
Category Medium Oil (solution) Total
Mbbl MMscf Mboe
----------------------------------------------------------------------------
Proved
Developed Producing 76 31 81
Developed Non-producing 18 7 19
Total Proved 94 38 100
Probable 178 71 190
Total Proved plus Probable 272 109 290
Possible 89 36 95
Total Proved plus Probable
plus possible 361 145 385
----------------------------------------------------------------------------
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, operated by TAG Oil Ltd. (TSX:TAO);
in December 2013, the Company was awarded one block in the emerging East Coast
Basin of New Zealand, which 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.
Chris Beltgens
Corporate Development Manager
+1 604 682 1558
+1 604 682 1568 (FAX)
www.eastwestpetroleum.ca
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