East West to test Bvs-1000 well in Q1 2020

2019-11-27 06:52 MT - News Release

An anonymous director reports

EAST WEST PETROLEUM ANNOUNCES OPERATIONAL UPDATES

East West Petroleum Corp. has provided an update on operations.

Romania

The company's joint venture partner and operator, Naftna Industrija Srbije (NIS), has provided the following information.

The operator, NIS, is actively progressing with comprehensive exploration programs in the EX2, EX3, EX7 and EX8 exploration blocks. It should be noted that all activities are dependent on securing the necessary government and local approvals.

Block EX-2 -- the 3-D seismic acquisition program of 170 square kilometres was completed in Q3 2019 and processing is under way. The phase 1 exploration period was extended for another two years and now ends in December, 2021.

Block EX-3 -- processing of the 223 square km of 3-D seismic data acquired in 2018 has been finished and interpretation is under way. Results are expected by end 2019. The phase 1 exploration period was also extended for another two years and now ends in December, 2021.

Block EX-7 -- an exploration well, Bvs-1000, was drilled in 1Q2019 to a total depth of 3,800 m and encountered several potential hydrocarbon bearing zones as identified on logs. Testing is now expected to commence in Q1 2020.

A deviated appraisal well on the Teremia North discovery, Ter-1001, was drilled in Q1 2019 and encountered several potential hydrocarbon-bearing zones. A long-term test was conducted from April to July, 2019, which established a stabilized oil flow rate of approximately 150 barrels of oil per day. Extended well testing is continuing.

Block EX-8 -- A second deviated appraisal well on the Teremia North field, Ter-1002, was spudded in September, 2019, and has been drilled to a measured depth of more than 2,600 m. Extended testing is planned.

An exploration well, Pes-1000, was drilled and completed in Q3 2019 to a total depth of around 2,500 m. Several potential hydrocarbon bearing zones were encountered and testing is planned to commence before the end of 2019.

NIS will be financing 100 per cent of the costs and fully carrying East West Petroleum through the commitment work programs in each of the blocks in return for earning an 85-per-cent interest in each licence.

New Zealand

As previously announced the company has an agreement for sale of its 30-per-cent interest in its New Zealand permits and has been working with the purchaser to deal with the closing process. Recently there was a change in ownership of the operator and 70-per-cent owner which has resulted in a letter from government authorities regarding the financial capacity of the operator which impacts tenure to the permits. The operator must address the comments by early February, 2020, and as a result closing of the company's sale cannot occur until this issue is dealt with. As more information is obtained the company will provide an update.

About East West Petroleum Corp.

East West Petroleum is a TSX Venture Exchange listed company established in 2010 to invest in international oil and 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 one million 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.

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