VANCOUVER, April 23, 2019 /CNW/ - East West
Petroleum Corp. (TSX-V: EW) ("East West" or the "Company") Mr.
Nick DeMare, interim
CEO, provides this corporate update in regards to various
ongoing matters.
As was announced April 2, 2019 the
agreement with Juva Life Inc. was terminated pursuant to the mutual
understanding of the parties and the terms of the agreement.
Each company was responsible for its own transaction costs and no
break fee existed in the agreements. The Company has moved on
from the Juva transaction and is working with its core assets. The
Company continues to hold its oil and gas assets in New Zealand and Romania.
With respect to its New Zealand
assets, the Company is aware that TAG Oil Ltd. 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. Closing of the TAG sale has not
yet occurred. Management is currently assessing the options
available to realize value from its 30% holding in the Cheal
permits and the Company has been approached by parties interested
in acquiring our interest. Negotiations are ongoing.
In Romania the Company has been
advised by the operator, Naftna Industrija Srbije ("NIS") that
since our update news release of January 8,
2019, the drilling of the Teremia 1001 well has been
completed and operations are now moving to testing phase. As
information is received we will provide further updates to the
market. The operator has also advised that additional production
testing of the Teremia 1000 well is scheduled for June 2019.
The Company currently has cash of approximately $3.2 million and marketable securities with a
value of approximately $1.1
million. All costs related to the Juva transaction
have been paid, total being approximately $210,000. The Company has also recently
funded capital expenditures for well workovers for its New Zealand property in excess of $700,000. The work was successful and the Company
is now seeing an improvement in production. The Company is
financially well placed and management will be working to advance
its future development.
On Behalf of the Board of Directors
Nick DeMare, Interim CEO
E: ndemare@chasemgt.com
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.
This news release contains "forward-looking information"
within the meaning of applicable securities laws. The Company has
provided the forward-looking information, including, without
limitation, statements relating to the receipt of shareholder
approval for and subsequent completion of the Transaction, the
Spin-Out, the consolidation of common shares in the capital of the
Company, and related transactions, in reliance on assumptions that
it believes are reasonable at this time. Although the Company
believes in light of the experience of its officers and directors,
current conditions and expected future developments and other
factors that have been considered appropriate that the expectations
reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give
no assurance that they will prove to be correct. Actual results and
developments may differ materially from those contemplated by these
statements depending on, among other things, changes in general
economic, market, or business conditions, and those risks set out
in the Company's public documents filed on SEDAR. The
forward-looking statements contained in this news release are made
as of the date hereof and the Company does not undertake to update
any forward-looking statements or forward-looking information that
is incorporated by reference herein, except as required by
applicable securities laws.
SOURCE East West Petroleum Corp.
