VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 07/27/11 — East West Petroleum Corp. (TSX VENTURE: EW) (the “Company” or “East West”) provides the following program and operational update regarding its various E&P projects in Eastern Europe and India.
In Romania, the Company is moving forward with preparation for exploration operations on the four prospective Concessions covering approximately 1 million acres in the Pannonian Basin. A request to commence environmental baseline surveys and prepare for the acquisition of 900 km of 2D and 600 km of 3D seismic data has been sent to the National Agency for Mineral Resources (NAMR). With NAMR approval, work is expected to commence later this year. The four-block work program commitment, estimated at up to $56 million, will include the drilling of 12 exploratory wells over a period of two years. East West Petroleum has a 15% financial carry through to field commercialization and no further minimum work program funding is anticipated.
Subsequent to the MOU agreement signed in May with Naftna Industrija Srbije (NIS, a Serbian subsidiary of Russian-based GazpromNeft), covering E&P cooperation in Romania, the companies plan to meet in August, in Vancouver, to hold additional discussions. The Company will elaborate on its unconventional resource play expertise and experience in greater detail and discuss additional ways this technology can benefit both firms.
In Egypt, Kuwait Energy and East West Petroleum have agreed not to pursue the Sale and Purchase Agreement for the partial divestment of Kuwait Energy–s 20% working interest in Burg El Arab, Egypt. Both companies continue to work closely together to explore mutual area of cooperation.
In India, the Company is investigating a number of E&P opportunities to position itself for the future growth anticipated in the country–s conventional and unconventional resource plays. As announced earlier this year, the Company successfully participated in the NELP IX bid round held in March, 2011 in which the Company and its partners Oil India Ltd., Oil and Natural Gas Company and Gas Authority of India Ltd. were awarded block AA-ONN 2010/2 in northeast India. Block AA-ONN-2010/2, covering approximately 400 sq. km., lies within the Karbi Anglong District of the Assam-Arakan Basin, a proven petroliferous region which covers more than 116,000 sq. km in north-eastern India. Industry has been active in the region, with over 60,000 km of 2D and more than 7600 sq. km of 3D seismic data acquired, over 1,000 wells drilled and 118 oil and gas fields found to date. Current production for the area is estimated at 95,000 BOEPD, with original oil in place estimated at 36 billion barrels. Signing of the PSC with the Government of India is anticipated in the 4th quarter of 2011, after which time 400 sq. km of 3D seismic data will be acquired over the acreage. Operations are expected to commence in 2012.
The Government of India continues to move towards sponsorship of a shale NELP bid round. Mr. S. K. Srivastava, Director General of the Directorate General of Hydrocarbons organization, recently stated shale gas will add up additional resources in India–s hydrocarbon resource base. “The government is formulating a policy for offering the areas for shale gas exploration in the near future,” he added.
The Company remains in a strong cash position of just under C$30 million. Its portfolio of assets in India and Romania are fully funded and additional exploration and producing opportunities are actively being sought. No additional funding is anticipated at this time.
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Contacts:
East West Petroleum Corp.
David Sidoo
Chairman
+1 604 685 9316
+1 604 683 1585 (FAX)