VANCOUVER, Oct. 9, 2019 /CNW/ - East West
Petroleum Corp. (TSX-V: EW) ("East West" or the
"Company") is pleased to provide this update on the sale
of the Cheal permits.
On June 24th, 2019
Company announced it had entered into a heads of agreement for the
sale of its 30% interest in its Cheal concessions, subject to a
number of conditions.
The disposition of the Company's interests in the Cheal permits
was subject to a pre-existing right of first refusal by the
Company's joint venture participant in connection with the Cheal
property which has been waived allowing the Company to proceed with
its sale.
The Company has now finalized and signed definitive agreements
for the sale of the assets to a private arm's-length New Zealand company. Proceeds from the sale of
the Cheal permits will be redeployed by the Company for general
corporate purposes including consideration and evaluation of new
oil and gas assets. Following the disposition of the Cheal permits,
the Company's remaining petroleum asset will be its interest in
four concessions located in Romania. As a result, the Company will no
longer meet listing requirements for Tier 1 of the TSX-V and
movement to Tier 2 is likely. There will be no significant impact
on the Company from tier movement.
The Company received shareholder approval to the sale of the
Cheal permits on August
7th, 2019.
The Company has made necessary filings with the TSX Venture
Exchange and received conditional approval to close. Closing of the
transaction is subject to the buyer receiving all necessary
approvals from regulatory authorities in New Zealand and the Company receiving final
regulatory approval from TSX Venture Exchange.
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
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.
