Vancouver, February 26, 2021 - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") is pleased to provide the following operational update for Romania.
As previously reported, the Company's joint venture partner and operator, NIS Petrol ("NIS"), subsidiary of NIS a.d., suspended all operational activities on March 25th 2020 when a national lockdown was declared in Romania. All exploration operations have been on hold since that time.
In the latter part of 2020, NIS evaluated development options for the Teremia North oil discovery.
An Operating Committee Meeting was held on February 8th, 2021 where NIS voted that there was a commercial discovery at Teremia North whereas the Company voted that there was not a commercial discovery. The field economics were, in the Company's assessment, marginal and did not merit the significant capital contributions required. NIS a.d., being a vertically integrated oil and gas producer, could support the development costs given the internal economies available. NIS has since advised that it will be proceeding with the development plans for Teremia North oil accumulation on an exclusive basis. There is some uncertainty as to whether the proposed development can be conducted as an exclusive operation and the Company is assessing what options are available and is in discussions with NIS in regard to such matters.
With respect to future exploration in the four Romanian blocks, NIS has to date drilled five out of a total farmin commitment of twelve exploration wells. Although operations have been suspended due to the Covid-19 situation, NIS Petrol is committed to fulfilling the commitment work programs in all blocks, considering certain legislative changes and being granted appropriate licence extensions.
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.
Nick Demare
ndemare@chasemgt.com
Tel: (604) 685-9316
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/75538
