Ewpmf - East West Petroleum Corporation

Discussion in 'Penny Stocks' started by Jon Alba, Jan 10, 2020.

  1. Jon Alba

    Jon Alba Senior Investor

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    EW.V - East West Petroleum Corp (Due Diligence Report)

    Symbol: EW.V (Canada) & EWPMF(USA)
    Current Price: $0.055CAD & $0.04USD
    Shares Outstanding: 89,585,665

    Most Recent Financials (Ending September 30th, 2019) In CAD

    ASSETS
    Cash: $3,719,020
    GST Receivable: $7,923
    Amounts Receivable: $223,772
    Prepaid Expenses: $22,654
    Investments: $554,709
    Assets Held For Sale: $2,067,867
    Total Assets: $6,595,945

    LIABILITIES
    Accounts Payable: $206,404
    Decommissioning Liability: $309,904
    Liabilities On Asset Held For Sale: $943,472
    Deposit: $65,505
    Total Liabilities: $1,525,285

    NAV $6,595,945 - $1,525,285 = $5,070,660


    Management Discussion 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 has agreed to sell its interest in PEP 54877
    and PMP 60291 which comprise the majority of its New Zealand assets. See “Proposed Disposition of New Zealand
    Oil & Gas Assets”. The Company also holds investments in common shares of Advantage Lithium Corp.
    (“Advantage Lithium”) and Seaway Energy Services Inc. (Seaway”), public companies whose common shares trade on the
    TSXV. The Company’s principal office is located at #1305 - 1090 West Georgia Street, Vancouver, BC, V6E
    3V7.

    Proposed Disposition of New Zealand Oil & Gas Assets

    On June 24, 2019 the Company signed a heads of agreement (the “HOA”) with a private arm’s length New Zealand
    company (the “Buyer”) pursuant to which the Company has 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 5, 2019 the Company and the Buyer signed the definitive agreement ( the “Definitive Agreement”) for the
    sale and purchase of the Permits under the Transaction.

    The Permits are the subject of a joint operating agreement (the “JOA”) between EWNZ, a wholly-owned subsidiary of
    the Company, and Cheal Petroleum Limited (“CPL”). The disposition of the Company’s interest in the Permits will be
    conditional upon the waiver of CPL of its rights under the JOA to acquire the Company’s interest in the Permits, and
    the waiver or satisfaction of any other obligations as may exist to CPL.

    Pursuant to the terms of the Definitive Agreement, and in consideration of the Transaction, the Buyer will pay the
    Company US $1,900,000 in cash. The effective date for the sale is April 1, 2019 and payments are staged over 16
    months of closing with initial payment of US $1,000,000 with normal closing adjustments, due on closing. On
    August 7, 2019 the Company received Company shareholder approval. Completion of the Transaction is subject to
    approvals to the transfer from New Zealand’s Overseas Investment Act 2005 and New Zealand Petroleum and
    Minerals (“NZP&M”) and final TSXV approval.

    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 $62,741,000 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.

    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.

    On Block EX-3, processing of the data acquired last year on 223 km2 3D seismic program has been finished.
    Interpretation of the data is ongoing and results are expected by the end of December 2019.
    On Block EX-7, an exploration well, Bvs-1000, was drilled in 1Q/2019 (calendar) to a total depth of 3,800 meters and
    encountered several potential hydrocarbon bearing zones as identified on logs. Testing is now expected to commence
    in 1Q/2020(calendar). A deviated appraisal well on the Teremia North discovery, Ter-1001, was drilled in 1Q/2019
    (calendar) 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 bopd. Extended well testing is ongoing.

    On 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 metres. Extended testing is planned. An
    exploration well, Pes-1000 was drilled and completed in 3Q/2019 (calendar) to a total depth of around 2,500 metres.
    Several potential hydrocarbon bearing zones were encountered and testing is planned to commence before the end of
    December 2019.

    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.

    Investments

    As at September 30, 2019 the Company held 1,719,000 common shares of Advantage Lithium and 512,400 common
    shares of Seaway. The September 30, 2019 fair value of these investments was $554,709. Certain current and former
    directors and officers of the Company are also current and former directors and /or officers of Advantage Lithium and
    Seaway.

    Outstanding Share Data
    The Company’s authorized share capital is unlimited common shares with no par value. As at November 27, 2019
    there were 89,585,665 outstanding common shares and 3,415,000 share options outstanding with exercise prices
    ranging from $0.09 to $0.135 per share.
     
  2. Jon Alba

    Jon Alba Senior Investor

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    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.

    We seek Safe Harbor.

    © 2020 Canjex Publishing Ltd. All rights reserved.
     

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