VANCOUVER, June 24, 2019
/CNW/ - East West Petroleum Corp. (TSX-V: EW) ("East
West" or the "Company") announces that it has entered into
a heads of agreement dated June
24th, 2019 (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 Petroleum Exploration Permit 54877 and
Petroleum Mining Permit 60291 (collectively, the "Permits")
which comprise the entirety of the Company's assets in New Zealand (the "Transaction").
The Permits are the subject of a Joint Operating Agreement
between a wholly owned subsidiary of East West and Cheal Petroleum
Limited ("CPL"). The disposition of East West's interest in
the Permits will be conditional upon the waiver of CPL of its
rights under the Joint Operating Agreement to acquire East West'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 HOA, and in consideration of the
Transaction, the Buyer will pay East West US$1,900,000 in cash. The effective date for the
sale is April 1st 2019 and
payments are staged over 12 months of closing with initial payment
of US $ 1,000,000 with normal closing
adjustments, due on closing.
The Transaction would represent a "Reviewable Disposition" as
defined in Policy 5.3 - Acquisitions and Dispositions of
Non-Cash Assets of the TSX Venture Exchange (the
"TSXV"). As such, completion of the Transaction is
subject to approval by the TSXV. It is not anticipated that
approval of the Transaction by the Company's shareholders will be
required.
Completion of the Transaction is subject to, among other things,
obtaining necessary approvals and consents dependant on the
structure of the Transaction as agreed to by the parties. There are
no finder's fees payables in connection with this Transaction.
About East West Petroleum Corp.
East West Petroleum Corp. (www.eastwestpetroleum.ca) is a TSX
Venture Exchange listed company established in 2010 to invest in
international oil & 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 1,000,000 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.
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.
Forward-looking Statements: Certain statements in this
press release are "forward-looking statements" which reflect the
Company's current expectations and projections about future events
and financial trends that it believes might affect its financial
condition, results of operations, business strategy and financial
needs. In some cases, these forward-looking statements can be
identified by words or phrases such as "may", "might", "will",
"expect", "anticipate", "estimate", "intend", "plan", "indicate",
"seek", "believe", "estimates", "predicts" or "likely", or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements. Whether actual results,
performance or achievements will conform to the Company's
expectations and predictions is subject to a number of known and
unknown risks, uncertainties, assumptions and other factors,
including without limitation, those risks and uncertainties
discussed elsewhere in the Company's filings on SEDAR. Investors
should not place undue reliance on forward-looking information. The
forward-looking information contained herein is made as of the date
hereof and is not obligated to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
SOURCE East West Petroleum Corp.
