East West Petroleum Year End Results (Ending March 31st  2020), Announced August 18th 2020
All information can be found at - www.sedar.com

Symbols: EW.V (Canada) & EWPMF (USA)
Current Price: $0.05CAD & $0.0379USD
Shares Outstanding: 89,585,665

Balance Sheet (Expressed In Canadian Dollars)

ASSETS
Cash: $4,908,264 - $0.055 cents in cash
GST Receivable: $3,742
Amounts Receivable: $605,187
Prepaid Expenses: $22,741
Investments: $511,734
Exploration & Evaluation Assets: $1,579,279
Property, Plant & Equipment: $656,348
Total Assets: $8,287,295

LIABILITIES
Accounts Payable: $491,898
Deposit: $70,935
Decommissioning: $1,269,824
Total Liabilities: $1,832,657

Sales Performance
Revenue: $3,676,561
Net Revenue: $1,794,719
Net Revenue After G&A Expenses: $827,849
Comprehensive Income: $536,959 - $0.006 cents earnings per share.

MD&A Highlights

Company Overview

The Company is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange (“TSXV”) under the symbol “EW” as a Tier 1 issuer. The Company currently carries on business in one operating segment, being the acquisition of, exploration for and production from petroleum and natural gas properties. The Company’s current portfolio consists of interests in exploration concessions in New Zealand and Romania and producing properties in the Taranaki Basin, New Zealand. The Company also holds marketable investments in common shares of publicly traded companies. The Company’s principal office is located at #1305 - 1090 West Georgia Street, Vancouver, BC, V6E 3V7

The Company had agreed to sell its interest in PEP 54877 and PMP 60291 which comprise the majority of its New Zealand assets. The agreement was terminated by the Company on August 1, 2020. See “Proposed Disposition of New Zealand Oil & Gas Assets”. The Company is currently assessing its go-forward plans, which includes the possible sale of its New Zealand concessions to other buyers, and whether its focus should remain on the oil and gas sector. At this time no decisions have been made but the Company will be assessing alternatives.

Proposed Disposition of New Zealand Oil & Gas Assets

On June 24, 2019 the Company signed a heads of agreement with a private arm’s length New Zealand company (the “Buyer”) pursuant to which the Company agreed to sell its interest in PEP 54877 and PMP 60291 (collectively, the “Permits”) which comprise the entirety of the Company’s assets in New Zealand (the “Transaction”). On October 8, 2019, as amended, the Company and the Buyer signed the definitive agreement (the “Definitive Agreement”) for the sale and purchase of the Permits under the Transaction. Pursuant to the terms of the Definitive Agreement, and in consideration of the Transaction, the Buyer agreed to pay the Company US $1,900,000 (the “Purchase Price”), with April 1, 2019 as the effective date (the “Effective Date”). On July 16, 2019 the Company received a deposit of $70,935 (US $50,000) (the “Deposit”) from the Buyer which was refundable to the Buyer under certain conditions. In addition to the Deposit, all revenue, less associated sales costs, production costs, royalties and capital costs, received by the Company subsequent to the Effective Date would be credited to the Purchase Price to be paid by the Buyer. On August 7, 2019 the Company received shareholder approval to the Transaction. As at March 31, 2020 closing of the Transaction was still subject to final New Zealand governmental and TSXV approvals. On August 1, 2020 the Company terminated the Definitive Agreement as the amount to be received, given the April 1, 2019 effective date, was significantly less than current value. The Deposit was refunded to the Buyer. See also “Project Update - New Zealand”.

Romania

During fiscal 2010 the Company was informed by the government of Romania that it had been awarded four exploration blocks located in the Pannonian Basin, in western Romania. In May 2011 the Company signed petroleum concession agreements with the National Agency for Minerals and Hydrocarbons (“NAMR”) the government agency in Romania which regulates the oil and gas industry. The four concessions have specific mandatory work programs (the “Romania Work Programs”), which were estimated at US $63,000,000 for all four programs. Production from the concessions is also subject to royalties of between 3.5% to 13.5% based on quarterly gross production payable to the government. On May 20, 2011 the Company and Naftna Industrija Srbije j.s.c. Novi Sad (“NIS”), an arm’s length corporation, signed a memorandum of understanding to jointly explore the four exploration blocks in Romania. On October 27, 2011 the Company and NIS signed a farm-out agreement (the “Farm-out”). Under the terms of the Farm-out, NIS has paid the Company a total of $525,000 for the assignment of an 85% participation interest and operatorship of the Romania Work Programs to NIS. NIS is the operator of the four concessions and has the obligation to fund the Romania Work Programs, including environmental work, 2D and 3D seismic acquisition and processing, and the drilling of 12 wells. The Company retains a 15% carried interest in each block through the obligatory Phase I work program and an optional one year Phase II work program which carries additional commitments. The current expiries of the Phase I terms are as follows: Block EX-2 December 12, 2021, Block EX-3 December 14, 2021 and November 22, 2020 for Blocks EX-7 and EX-8. If a commercial discovery is made, the Company is responsible for its 15% interest in development of the commercial discovery.

As operator, NIS has proposed and is actively progressing comprehensive exploration programs in the EX-2, EX-3, EX-7 and EX-8 exploration blocks in Romania. It should be noted that all activities are dependent on securing the necessary government and local approvals. Due to the Covid-19 pandemic the state of emergency a nationwide lockdown was imposed by the Romanian government on March 25, 2020. Consequently, the operator NIS, has temporarily ceased new exploration field activity until such time that the lockdown is lifted and social distancing requirements can be safely relaxed. It is expected that this will substantially delay the planned 2020 exploration programs in the EX-2, EX-3, EX-7 and EX-8 exploration blocks in Romania. As usual, it should be noted that all activities are dependent on securing the necessary government and local approvals. On Block Ex-2, acquisition program of 3D seismic in the amount of 170 Km2 was completed in Q3/2019 (calendar) and processing of the data is underway. The Phase 1 Exploration Period was extended for another two years and now ends in December 2021. On Block EX-3, processing of the data acquired last year on 223 km2 3D seismic program has been finished and interpretation of the data has been completed. This work identified several exploration prospects with drilling expected to commence in 2021 (calendar). The Phase 1 Exploration Period was extended for another two years and now ends in December 2021. On Block EX-7, an exploration well, Bvs-1000, was drilled in Q1/2019 (calendar) to a total depth of 3,800 meters and encountered several potential hydrocarbon bearing zones as identified on logs. Testing has now been postponed until 2021 (calendar). On the Teremia North discovery, the initial discovery well, Teremia-1000 experienced mechanical problems resulting in an inflow of formation water. A workover is planned for 2021. An appraisal well, Teremia1001, was drilled and completed in Q1/2019 (calendar) and, following initial testing, was placed on long term experimental production in July 2019. Production rates have stabilised around 150 bopd. On Block EX-8, a second deviated appraisal well, Teremia-1002, was drilled into the extension of the Teremia North discovery. The well was completed and tested in Q4/2019 (calendar) and has subsequently been placed on long term experimental production with rates stabilising around 150 bopd. An exploration well, Pesac Sud-1000 was drilled and completed in 3Q/2019 (calendar) two separate intervals were tested in Q4/2019 (calendar). Both tests failed to indicate the presence of hydrocarbons. Future testing of potentially prospective shallower zones is being considered for 2021 (calendar). NIS is committed to fulfilling the commitment work programs in all blocks, considering certain legislative changes and being granted appropriate extensions due to the current Covid-19 situation. NIS will be funding 100% of the costs and fully carrying the Company through the commitment work programs in each of the blocks in return for earning an 85% interest in each licence.