VANCOUVER, June 24, 2019 /CNW/ - East West Petroleum Corp. (TSX-V: EW) ("East West" or the "Company") announces that it has entered into a heads of agreement dated June 24th, 2019 (the "HOA") with a private arm's length New Zealand company (the "Buyer") pursuant to which the Company has agreed to sell its interest in Petroleum Exploration Permit 54877 and Petroleum Mining Permit 60291 (collectively, the "Permits") which comprise the entirety of the Company's assets in New Zealand (the "Transaction").
The Permits are the subject of a Joint Operating Agreement between a wholly owned subsidiary of East West and Cheal Petroleum Limited ("CPL"). The disposition of East West's interest in the Permits will be conditional upon the waiver of CPL of its rights under the Joint Operating Agreement to acquire East West's interest in the Permits, and the waiver or satisfaction of any other obligations as may exist to CPL.
Pursuant to the terms of the HOA, and in consideration of the Transaction, the Buyer will pay East West US$1,900,000 in cash. The effective date for the sale is April 1st 2019 and payments are staged over 12 months of closing with initial payment of US $ 1,000,000 with normal closing adjustments, due on closing.
The Transaction would represent a "Reviewable Disposition" as defined in Policy 5.3 - Acquisitions and Dispositions of Non-Cash Assets of the TSX Venture Exchange (the "TSXV"). As such, completion of the Transaction is subject to approval by the TSXV. It is not anticipated that approval of the Transaction by the Company's shareholders will be required.
Completion of the Transaction is subject to, among other things, obtaining necessary approvals and consents dependant on the structure of the Transaction as agreed to by the parties. There are no finder's fees payables in connection with this Transaction.
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.
Forward-looking Statements: Certain statements in this press release are "forward-looking statements" which reflect the Company's current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. In some cases, these forward-looking statements can be identified by words or phrases such as "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "estimates", "predicts" or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including without limitation, those risks and uncertainties discussed elsewhere in the Company's filings on SEDAR. Investors should not place undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date hereof and is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
SOURCE East West Petroleum Corp.
For further information: Nick DeMare, E-mail: [email protected], Tel: 604.685 9316