East West Petroleum Increases Revenue from Gas Production and Sets Stage for Future Oil Field Development in New Zealand
International oil and gas producer East West Petroleum Corp. (TSX VENTURE:EW) is pleased to announce that it has been informed by TAG Oil Ltd. (TSX:TAO), the operator of the Cheal East discovery site (TAG 70% / EW 30%) in the Taranaki Basin of New Zealand, that a pipeline connecting the Cheal East site to TAG’s main production facilities (TAG 100%) has been completed and is operational.
The TAG-owned pipeline is an important milestone as it generates additional revenue through the sale of E-site natural gas, it eliminates the flaring of the gas and the associated flaring costs, and it provides the required infrastructure for future development of the target-rich Cheal East discovery area. East West’s share of current estimated gas production at Cheal-E is approximately 540 mscfpd (90 boepd) net to EW.
David Sidoo, President and CEO of East West commented, “We are very pleased to monetize our natural gas production in New Zealand, which provides an immediate contribution to East West’s cash flow when added to the existing high netback oil production from Cheal East discovery area. East West remains cash flow positive from its operations and is fully funded to pursue its planned capital expenditure programs. On behalf of East West, I would like to extend my thanks and congratulations to TAG Oil Ltd. for completing the pipeline on budget and ahead of schedule.”
About East West Petroleum Corp.
East West Petroleum (www.eastwestpetroleum.ca) is a TSX Venture Exchange listed company established in 2010 to invest in international oil & gas opportunities. East West has built a diverse portfolio of attractive exploration assets covering a gross area of over one million acres. The Company has its primary focus on two key areas: New Zealand, where it has established production and cash flow and is evaluating a low risk exploration play, and Romania where it is fully carried on an upcoming high impact 12 well exploration program. In New Zealand, East West holds an interest in three exploration permits near to existing commercial production in the Taranaki Basin, operated by TAG Oil Ltd. (TSX:TAO). The Company also has interests in four exploration concessions covering 1,000,000 acres in the prolific Pannonian Basin of western Romania with Naftna Industrija Srbije (“NIS”).
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the ability to raise sufficient capital to fund exploration and development; the quantity of and future net revenues from the Company’s reserves; oil and natural gas production levels; commodity prices, foreign currency exchange rates and interest rates; capital expenditure programs and other expenditures; supply and demand for oil and natural gas; schedules and timing of certain projects and the Company’s strategy for growth; competitive conditions; the Company’s future operating and financial results; and treatment under governmental and other regulatory regimes and tax, environmental and other laws.
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