East West Granted Final Approval to Commence Operation on EX-2 Tria Concession in Romania
December 05 2012 - 4:56PM
Marketwired
East West Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East
West") is pleased to report it has received final approval from the
Government of Romania to commence operations on its 1000 sq. km.
(250,000 acre) EX-2 Tria Concession in western Romania. The EX-Tria
Concession was one of four Romanian concessions awarded to the
Company in a 2010 competitive exploration bid round.
Under the terms of the Tria Concession agreement with Romania's
National Agency for Mineral Resources ("NAMR"), the Company will
carry out an extensive, two-year work program which includes the
acquisition of 120 sq. km. of 3D seismic data and 200 km. of 2D
seismic data, plus the drilling of three wells. The Company has an
option to extend the agreement into Phase 2 by committing to
additional work. Earlier this year, the Company completed an
Environmental Impact Study (EIS) and an Environment Baseline Study
on the Tria block as a pre-requisite to commencing operations.
Prior to today's announcement, the Company entered into a
farmout agreement with Russia's GazpromNeft Serbian subsidiary
Naftna Industrija Srbije a. d. Novi Sad ("NIS") covering the
Company's four awarded exploration Concessions. NIS is a major oil
and gas producer and highly qualified operator in the Pannonian
Basin where EX-2 Tria is located. Under the terms of this
agreement, NIS will pay 100% of the four Concession work programs
that includes drilling 12 exploration wells in the Phase 1,
two-year period, at a total estimated cost of EUR 60 million. East
West will retain a 15% participation interest and NIS will hold an
85% participation interest in each block. East West will be carried
on the work programs through to declaration of commerciality for
each discovery. The other three concessions are expected to be
ratified in 2013.
Preliminary technical work on the Tria Concession, combined with
the Company's ongoing regional Pannonian Basin studies, has
revealed a number of prospective petroleum plays on the EX-2 Tria
acreage. Nine prospects and leads have been identified which will
now be analyzed in detail, using new 2D and 3D seismic data plus
other technical data to be made available by NAMR. A seismic crew
has been identified and is expected to commence data acquisition in
the 1st quarter of 2013. Drilling is expected to commence before
mid-2013.
David Sidoo, Chairman of the Company, noted, "I am very pleased
to announce that the Government of Romania has completed the
process of ratification for our Tria Concession, thereby allowing
the Company to proceed with operations. Management and the Board of
Directors very much appreciate the support demonstrated by our long
term shareholders and we are confident once drilling begins in
Romania in 2013, shareholders will be rewarded."
Greg Renwick, President & CEO, also commented, "Ratification
of the Tria Concession is an excellent first step in allowing the
Company to initialize its extensive work program plans which are
expected to validate the hydrocarbon potential of this
under-explored area of Romania. NIS, with our assistance, has
established and staffed an exploration and operations office in
Romania and initiated tenders for seismic acquisition, drilling
crews and logistical support. A number of prospects and leads have
already been identified and will be prioritized for drilling in
2013."
About East West Petroleum Corp.
East West Petroleum is a TSX Venture Exchange listed company
which was established in 2010 to invest in emerging unconventional
resource plays, leveraging management's knowledge of international
opportunities and unconventional play technical expertise. In its
first 18 months of operations, the Company has built an attractive
platform of assets: an oil-prone, exploration block in the Assam
region of India with the three largest exploration and production
Indian firms ONGC, Oil India and GAIL; four exploration concessions
covering 1,000,000 acres in the prolific Pannonian Basin of western
Romania with a subsidiary of Russia's Gazpromneft; a 100% interest
in a 500,000 acre exploration block onshore Morocco with
conventional and unconventional potential and a joint venture
exploration program covering 5000 gross acres in California. The
Company has also established oil and gas production in Canada. The
Company is now poised to enter operational phases in Romania, where
it will be fully carried by its partner Gazprom-controlled Naftna
Industrija Srbije in a seismic and 12-well drilling program
expected to commence in 2013. The Company will operate geological
field work and a seismic program to firm up drilling locations in
Morocco. The Company is well funded to cover all anticipated
seismic and drilling operations through 2013, with funds available
to secure other exploration and/or producing properties.
For more information visit website: www.eastwestpetroleum.ca
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.
Contacts: East West Petroleum Corp. David Sidoo Chairman +1 604
682 1558 +1 604 682 1568 (FAX) East West Petroleum Corp. Greg
Renwick President & CEO +1 972 955 7251 +1 604 683 1585 (FAX)
www.eastwestpetroleum.ca