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
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.
For further information: 1305 - 1090 West Georgia Street, Vancouver, BC, Canada, V6E 3V7, Tel: 604.682.1558, Fax: 604.682.1568