VANCOUVER, Jan. 8, 2019
/CNW/ - East West Petroleum Corp. (TSX-V: EW) ("East
West" or the "Company") is pleased to provide this
corporate update.
JUVA LIFE INC. ("JUVA") ACQUISITION UPDATE
As announced on July
17th and August
17th 2018 the Company continues to work on the
necessary documentation to implement the transaction as previously
announced. A meeting of shareholders to vote on the Juva
transaction and related matters has been scheduled for February 20th 2019 and the Company's
information circular will be mailed to all shareholders on or about
January 22nd 2019.
Assuming shareholders approve the transaction, closing should occur
on or about February 28th
2019. On completion shareholders will hold common shares of
Juva, on a 10:1 ratio, and common shares of East West Oil and Gas
Limited, on a 1:1 ratio. East West Oil and Gas Limited will
hold the existing assets of the Company and will seek a listing on
a recognized exchange. Timing for completion of the listing
is currently not known but management intends to pursue listing on
a priority basis.
OPERATIONAL UPDATES
New Zealand
The Company has been advised by TAG Oil Ltd. ("TAG") that it has
reached an agreement to sell 100% of its New Zealand assets including the Cheal permits
which are owned 70% by TAG and 30% by the Company. Management is
currently assessing the options available to realize value from its
30% holding in the Cheal permits.
Romania
The Company's joint venture partner and operator, Naftna
Industrija Srbije ("NIS") has provided the following operational
update for Romania.
The operator, NIS, has proposed and is actively progressing
comprehensive exploration programs in the EX2, EX3, EX7 and EX8
exploration blocks in Romania. It
should be noted that all activities are dependent on securing the
necessary government and local approvals.
In October 2018, acquisition
program of 3D seismic in the amount of 223 Km2 was
successfully completed in EX-3, thus fulfilling the obligations
assumed by the concession agreement. The data is now being
processed, with potential prospects and leads to be generated in
2Q2019. Permitting is ongoing for a similar project in EX-2 and the
works are planned to begin next year. Drilling one exploration in
EX-2 is planned for 4Q2019.
In EX-7, following the successful testing of the Ter-1000 well
in 2017, one more appraisal well is being drilled, to be finished
this year, with testing results available in 1Q2019. As part
of the continuous appraisal program, 102 km of 2D seismic was
completed. The detailed design project for experimental production
on Ter-1000 is in progress and it will be completed by the
year-end, with plans to commence in 2Q2019.
Meanwhile, drilling on another location – Bvs-1000 started in
August, being delayed due to technical issues for two month and
resumed in October 2018.Drilling works on this well are to be
finished by January 2019 and in case
the well encounter hydrocarbons testing results are expecting in
early 2Q2019.
In 2019, two more wells will be drilled, one more appraisal well
Ter-1002 in EX-8, and another exploration well in the same block to
be drilled in 2019. Permitting for both wells is progressing and
most likely to be finished in the 1Q2019.
NIS will be funding 100% of the costs and fully carrying East
West through the commitment work programs in each of the blocks in
return for earning an 85% interest in each licence.
About East West Petroleum Corp.
East West Petroleum Corp. (www.eastwestpetroleum.ca) is a TSX
Venture Exchange listed company established in 2010 to invest in
international oil & gas opportunities. The Company has its
primary focus on two key areas: New
Zealand, where it has established production and cash flow
and Romania where it is carried to
production on an exploration program. In Romania the Company has exploration rights in
four exploration concessions covering 1,000,000 acres in the
prolific Pannonian Basin of western Romania with Naftna Industrija Srbije ("NIS").
The Company does not own the acres but has exploration rights.
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.
SOURCE East West Petroleum Corp.