East West Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West") is pleased to report it has received final approval from the Government of Romania to commence operations on its 1000 sq. km. (250,000 acre) EX-2 Tria Concession in western Romania. The EX-Tria Concession was one of four Romanian concessions awarded to the Company in a 2010 competitive exploration bid round.
Under the terms of the Tria Concession agreement with Romania's National Agency for Mineral Resources ("NAMR"), the Company will carry out an extensive, two-year work program which includes the acquisition of 120 sq. km. of 3D seismic data and 200 km. of 2D seismic data, plus the drilling of three wells. The Company has an option to extend the agreement into Phase 2 by committing to additional work. Earlier this year, the Company completed an Environmental Impact Study (EIS) and an Environment Baseline Study on the Tria block as a pre-requisite to commencing operations.
Prior to today's announcement, the Company entered into a farmout agreement with Russia's GazpromNeft Serbian subsidiary Naftna Industrija Srbije a. d. Novi Sad ("NIS") covering the Company's four awarded exploration Concessions. NIS is a major oil and gas producer and highly qualified operator in the Pannonian Basin where EX-2 Tria is located. Under the terms of this agreement, NIS will pay 100% of the four Concession work programs that includes drilling 12 exploration wells in the Phase 1, two-year period, at a total estimated cost of EUR 60 million. East West will retain a 15% participation interest and NIS will hold an 85% participation interest in each block. East West will be carried on the work programs through to declaration of commerciality for each discovery. The other three concessions are expected to be ratified in 2013.
Preliminary technical work on the Tria Concession, combined with the Company's ongoing regional Pannonian Basin studies, has revealed a number of prospective petroleum plays on the EX-2 Tria acreage. Nine prospects and leads have been identified which will now be analyzed in detail, using new 2D and 3D seismic data plus other technical data to be made available by NAMR. A seismic crew has been identified and is expected to commence data acquisition in the 1st quarter of 2013. Drilling is expected to commence before mid-2013.
David Sidoo, Chairman of the Company, noted, "I am very pleased to announce that the Government of Romania has completed the process of ratification for our Tria Concession, thereby allowing the Company to proceed with operations. Management and the Board of Directors very much appreciate the support demonstrated by our long term shareholders and we are confident once drilling begins in Romania in 2013, shareholders will be rewarded."
Greg Renwick, President & CEO, also commented, "Ratification of the Tria Concession is an excellent first step in allowing the Company to initialize its extensive work program plans which are expected to validate the hydrocarbon potential of this under-explored area of Romania. NIS, with our assistance, has established and staffed an exploration and operations office in Romania and initiated tenders for seismic acquisition, drilling crews and logistical support. A number of prospects and leads have already been identified and will be prioritized for drilling in 2013."
About East West Petroleum Corp.
East West Petroleum is a TSX Venture Exchange listed company which was established in 2010 to invest in emerging unconventional resource plays, leveraging management's knowledge of international opportunities and unconventional play technical expertise. In its first 18 months of operations, the Company has built an attractive platform of assets: an oil-prone, exploration block in the Assam region of India with the three largest exploration and production Indian firms ONGC, Oil India and GAIL; four exploration concessions covering 1,000,000 acres in the prolific Pannonian Basin of western Romania with a subsidiary of Russia's Gazpromneft; a 100% interest in a 500,000 acre exploration block onshore Morocco with conventional and unconventional potential and a joint venture exploration program covering 5000 gross acres in California. The Company has also established oil and gas production in Canada. The Company is now poised to enter 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 expected to commence in 2013. The Company will operate geological field work and a seismic program to firm up drilling locations in Morocco. The Company is well funded to cover all anticipated seismic and drilling operations through 2013, with funds available to secure other exploration and/or producing properties.
For more information visit website: www.eastwestpetroleum.ca
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East West Petroleum Corp.
+1 604 682 1558
+1 604 682 1568 (FAX)
East West Petroleum Corp.
President & CEO
+1 972 955 7251
+1 604 683 1585 (FAX)