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East West Petroleum Q3 Results Released November 30th 2020. Information below can be found on Sedar.

Symbols: EW(Canada) & EWPMF(USA)
Prices: $0.045CAD & $0.03USD
Common Shares: 89,585,665
Website: www.eastwestpetroleum.ca

Financial Results, Ending September 30th 2020 - keeping in mind that brent oil was lower this quarter

ASSETS
Cash: $4,911,056 - Company currently has a market cap below it's cash value
GST Receivable: $6,280
Amounts Receivable: $166,802
Prepaid Expenses: $28,880
Investments: $599,200 - Both stocks held have gone up since this end period
Exploration & Evaluation Assets: $1,655,361
Property, Plant & Equipment: $368,384
Total Assets: $7,735,963

LIABILITIES
Accounts Payable: $284,094
Decommissioning: $1,325,303
Total Liabilities: $1,609,397

Performance
Six Month Revenue: $1,135,141 (2019 - $1,491,042) - Lower due to the oil price drop from Covid
Net Loss: $328,072 - Depletion was $340,000

Management Discussion Highlights

New Zealand

PMP 60291 is the location of the Cheal E-Site and the Cheal E-site production facility as well as the Cheal-E wells.
There has been continued positive response from the Cheal E waterflood program, with both production and pressure
increases having been observed. The Cheal E waterflood program was expanded to include the conversion of the
Cheal-E4 well to a water injector in two Mt. Messenger formation intervals, which has swept oil towards the Cheal
E1 producing well from the southern area of the field resulting in additional oil recovery and extending the Cheal-E
site’s field life.

The Company’s portion of oil and gas production remained relatively consistent during the three months ended
September 30, 2020 (“Q2”) compared to the three months ended June 30, 2020 (“Q1). During Q2 the Company’s
portion of oil and gas production was 13.8 Mbbl oil and 21.2 Mmcf gas, compared to 15.3 Mbbl oil and 21.8 Mmcf
gas during Q1. The Company had five wells, the Cheal-E1, E2, E5, E6 and E8 producing for both Q2 and Q1.
On October 24, 2020 the Cheal-E1 pump stopped functioning. The Operator has managed to pull the rods with a
crane and intends to clean the well and replace the pump. Production from the Cheal-E1 well is expected to resume
by mid to late December 2020.

Romania

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.

Due to the Covid-19 pandemic the state of emergency a nationwide lockdown was imposed by the Romanian
government on March 25, 2020. Consequently, the operator NIS, has temporarily ceased new exploration field activity
until such time that the lockdown is lifted and social distancing requirements can be safely relaxed. It is expected that
this will substantially delay the planned 2020 exploration programs in the EX-2, EX-3, EX-7 and EX-8 exploration
blocks in Romania. As usual, 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)
with processing completed in July 2020. Interpretation is currently underway. The Phase 1 Exploration Period was
extended for another two years and now ends in December 2021.

On Block EX-3, processing of the data acquired last year on 223 km² 3D seismic program has been finished and
interpretation of the data has been completed. This work identified several exploration prospects with drilling
expected to commence in 2021 (calendar). The Phase 1 Exploration Period was extended for another two years and
now ends in December 2021.

On Block EX-7, an exploration well, Bvs-1000, was drilled in Q1/2019 (calendar) to a total depth of 3,800 meters and
encountered several potential hydrocarbon bearing zones as identified on logs. Testing has now been postponed until
2021 (calendar). On the Teremia North discovery, the initial discovery well, Teremia-1000 experienced mechanical
problems resulting in an inflow of formation water. NIS now plans to recomplete the well as a potential gas producer
in either 2021 or 2022. An appraisal well, Teremia-1001, was drilled and completed in Q1/2019 (calendar) and,
following initial testing, was placed on long term experimental production in July 2019.

On Block EX-8, a second deviated appraisal well, Teremia-1002, was drilled into the extension of the Teremia North
discovery. The well was completed and tested in Q4/2019 (calendar) and has subsequently been placed on long term
experimental production.

NIS has requested extension of the experimental oil production periods for Teremia-1001 and Teremia-1002 to gather
more performance data.

An exploration well, Pesac Sud-1000 was drilled and completed in 3Q/2019 (calendar) two separate intervals were
tested in Q4/2019 (calendar). Both tests failed to indicate the presence of hydrocarbons. Future testing of potentially
prospective shallower zones is being considered for 2021 (calendar).

NIS is committed to fulfilling the commitment work programs in all blocks, considering certain legislative changes
and being granted appropriate extensions due to the current Covid-19 situation.

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. A technical meeting is tentatively scheduled
for September 2020 in which NIS is expected to present a proposal for a development phase for which the Company
will be responsible for its 15% interest.

Investments

As at September 30, 2020 the Company held 240,000 common shares of Orocobre and 190,000 common shares of
Sweet Earth with a total quoted value of $599,200

Commitments

The Company’s share of expected exploration and development permit obligations and/or commitments as at
September 30, 2020 are approximately $147,000 to be incurred during fiscal 2021 and $1,400,000 over the next five
years. The Company may choose to alter the program, request extensions, reject development costs, relinquish certain
permits or farm-out its interest in permits where practical
 
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Great news release today! production is back up and climbing. As well, quarterly numbers were announced last week and the company has just under $5.5 million in cash, which is where it trades at. No value given on it's oil assets, so the discount is quite large.

East West Petroleum Provides Operational Update for New Zealand

2021-08-11 06:01 ET - News Release

Vancouver, British Columbia--(Newsfile Corp. - August 11, 2021) - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") is pleased to provide the following operational update for New Zealand.

A workover of the Cheal E1 and E2 wells to clear downhole wax and sand issues has been recently completed and was successful in re-establishing production in both wells.

The Cheal E field is now producing at an approximate 250 barrels oil equivalent per day, of which about 80% is oil. A trial of a two-stage downhole pump in Cheal E1 proved to be too vulnerable to sand production issues and was replaced with a single stage downhole pump as previously employed. This is working reliably. Plans are in place to increase flow in the near future.

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.

Nick Demare
ndemare@chasemgt.com
Tel: (604) 685-9316
 
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March 30, 2022 Article - NIS Moving Ahead With Romania Oil & Gas Project (East West Mentioned)


NIS seeks turnkey status of international operator in the EU - Different concession options are being considered

Source: eKapija Wednesday, March 30, 2022 | 15:54

Naftna industrija Srbije ad Novi Sad has announced a tender for the provision of consulting services on the possibility of creating the status of an international IPM operator in the field of exploration and production. The status of IPM operator implies integrated project management of exploration and production, in this case oil, or the so-called "turnkey".

As stated in the technical documentation, NIS plans to move to IPM status during the implementation of the project of building a plant on oil concession fields in Romania, which eKapija has already written about , with further establishing the status of international IPM contractor.

The task of the consultant, it is stated, is to determine whether there are restrictions in the legislation of Romania and the EU for concluding contracts on a turnkey basis.

In case it is impossible to conclude an IPM contract, it is further said, the consultant should determine the possibility of NIS being a consultant during the project implementation in Romania and suggest alternative options for hiring one general contractor for the job.

It is added that NIS is currently interested in gaining experience as an international IPM contractor in the EU, which is why various options are being considered within the concession arrangements.

The tender is open until April 11, about the details HERE .

It should be reminded that Naftna industrija Srbije ad Novi Sad announced in early February a tender for the preparation and preparation of documentation necessary for the construction of mining facilities in the concession fields of NIS in Romania.

NIS's Romanian subsidiary, NIS Petrol, has six oil and gas exploration concessions in Romania for 25 years. The exploration fields are located along the border with Serbia and Hungary. Two years ago, NIS Petrol Romania built two surface infrastructure facilities, at the locations of Teremija and Žombolj, where the experimental production of oil and gas began at that time.

The tender documentation for the consultant also explained the steps that led to the acquisition of joint concession rights of NIS and the Canadian East West Petroleum Corporation (EWP) by the Romanian National Mineral Resources Agency in May 2011.

Subsequently, 85% of EWP's participation in transferred to NIS by the concession agreement and that company was appointed as the project operator, and in 2014 all rights were transferred to NIS Petrol.
 
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Written May 23, 2022 - Update On NIS/EW In Romania


Sales of the Romanian subsidiary Gazprom, Nis Petrol Romania SRL, increased 2.5 times in the first quarter of this year compared to the same period last year despite geopolitical tensions and sanctions imposed by the European Union since the start of the war in Ukraine, on February 24, reveals data analyzed by Profit.ro. As a result of these increases, Romania has become the second largest foreign market for the Serbian NIS Petrol Group, controlled by Gazprom Neft, the oil division of the Russian state giant Gazprom, after Bosnia and Herzegovina. Over 21% of the proceeds from the sale of crude oil and petroleum products traded outside Serbia by the NIS Petrol group come from Romania. Nis Petrol Group's sales in Romania increased in the first three months of this year from 2.2 billion dinars (18.7 million euros) to 5.36 billion dinars (45.7 million euros). The sales of 45.7 million euros in the first quarter are equivalent to approximately 70% of the turnover registered by NIS Petrol Romania SRL in the whole year 2020 .

Compared to 2.5 times the increase in Romania, sales in Bosnia increased only 1.8 times, to 8.1 billion dinars, those in Bulgaria, only about 1.4 times, to 3.8 billion dinars , and those in the United Kingdom have tripled to 1.5 billion dinars. Sales in Croatia and Germany increased similarly to those in Romania, but the value of NIS Petrol sales in those markets is modest, half a billion dinars each. The company's sales in Serbia have doubled from $ 36 billion to $ 72 billion. The main contribution to the increase in NIS Petrol sales in Romania was a 7-fold increase in deliveries to third parties, from 367 million dinars (3.1 million euros) to 2.56 billion dinars (21.8 million euros) . According to the company, NIS Petrol owns 19 fuel distribution stations in Romania and has a total market share of 2.7%, of which 1.5% on the retail market .

At the same time, the trading division of the Serbian group, NIS jsc Novi Sad, is active in the energy markets of Serbia (SEEPEX) and Romania (OPCOM), according to the report on the group's results for the first quarter of this year. Given the modest revenues from the sale of electricity outside Serbia, of only 170 million dinars (about 1.5 million euros), most of the revenues in Romania probably come from the sale of petroleum products. The Serbian group claims that it invested 32 billion dinars in the first quarter of this year, 70% in exploration and production, most of which in its concessions in Romania. NIS Petrol Romania has in its portfolio six oil and gas perimeters on the Romanian territory, all having the status of operator . There are four concessions for exploration-development and exploitation activities in partnership with the Canadian company East West Petroleum (two in Bihor County - EX-2 Tria and EX-3 Băile Felix and two in Timiș County - EX-7 Periam and EX-8 Biled ). A fifth concession is held in partnership with Zeta Petroleum and Armax Gaz, respectively the oil development and exploitation concession in the perimeter of DEE V-20 Jimbolia, Timiș County. The sixth concession for exploration-development-exploitation activities is also located in Timiș County, in the EX-12 Crai Nou perimeter. In 2019, NIS ad Serbia (the company that owns the Pancevo and Novi Sad refineries) has signed a contract with the national crude oil and condensate transport system operator, Conpet, which aims to transport crude oil to the Serbian border. extract from the Romanian subsidiary NIS Petrol from the leased perimeters in the west of the country . In the report for the first quarter of this year, CONPET states that it has provided crude oil, gasoline and condensate transport services based on contracts concluded with traditional customers: OMV Petrom SA, Petrotel LUKOIL SA, Rompetrol Rafinare SA, but also with new customers: Standard Logistic doo, Serinius Energy Romania SA and NIS Petrol SRL .
 
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East West Petroleum Audited Annual Results (Ending March 31, 2022)
All information is available at www.sedar.com

Symbols: EW (Canada) – EWPMF (USA) – 37A (Frankfurt)
Prices: $0.105 CAD - $0.848 USD - €0.058
Shares Outstanding: 89,585,665
Options: 2.79 Million (Between $0.06 and $0.135)
Warrants: Nil

Financials (In Canadian Dollars)

ASSETS
Cash: $5,145,788 - $0.0574c per share
GST Receivable: $3,649
Amounts Receivable: $38,870
Oil Inventory: $265,867
Prepaid Expenses: $39,292
Property, Plant & Equipment: $236,425
Total Assets: $5,729,891

LIABILITIES
Accounts Payable: $355,037
Decommissioning Liabilities: $1,185,985
Total Liabilities: $1,541,022

Allowable Capital Losses: $8,440,000
Non-Capital Losses Available For Future Periods: $28,550,000
- Canada: $17,329,000 from 2026-2042 & New Zealand: $11,221,000 No Expiry Date

Updated Information From Management Discussion

*Important Notes*
- Cash increased $269,284 between Q3 2021 and Q4 2021
- Q1 2022 financial results will be released end of August 2022
- Impairment charge of $1,627,056 in 2021 on leases that were not going to be worked on
- NIS/EW Deal in place for a cash/royalty deal on their Romania asset

New Zealand

During fiscal 2022 Cheal conducted a detailed prospectivity review of PEP 54877 and advised the Company that the forecasted economic prospects of PEP 54877 does not meet Cheal’s internal risk criteria. Although no final decision has been made to relinquish the permit in December 2022, the Company has determined to record an impairment of $1,627,056 for costs incurred to March 31, 2022.
PMP 60291 is the location of the Cheal E-Site and the Cheal E-site production facility as well as the Cheal-E wells. A waterflood program is ongoing however the efficacy of the program and its impact on production is an ongoing item of debate. The Company’s technical advisors have stated that there is no unequivocal evidence that water injection through the Cheal-E7 well has had a significant impact on production from PNP 60291 but that there is evidence to the contrary. The Company’s advisors attribute the production performance to other factors than injection through the Cheal-E7 well. The determination whether the waterflood utilizing Cheal-E7 as the injector well is creating the positive response in production impacts the Company’s obligation to fund its 30% share of the costs of acquiring the Cheal-E7 well, being 30% of NZ $3,200,000. No funding has been advanced, and no funding will be advanced until the issue is resolved.
The Company produces its oil and gas production from five wells on the Cheal-E site. On October 24, 2020 the ChealE1 pump stopped functioning due to downhole blockage and, as a result, production ceased from the Cheal-E1 well. As the major producing well, the stoppage of the Cheal-E1 well had a major impact on the Company’s share of production. In mid-January the Operator managed to pull the rods out of the Cheal-E1 well with a crane, cleaned the well and replaced the pump. However, only limited production resumed in mid-January 2021 without annular flow. In addition, in early March 2021 the Cheal-E2 well stopped working and several attempts to restart the well over the following three weeks were unsuccessful. Workovers of the Cheal-E1 well and the Cheal-E2 well were not completed until early August 2021 including the clearing of downhole wax and sand issues. The workovers were successful in re-establishing production in both wells. A trial of a two-stage downhole pump in Cheal-E1 proved to be too vulnerable to sand production issues and was replaced with a single stage downhole pump as previously employed. This is working reliably and an increase in flow was successfully implemented in Q3/2022.
As a result of the continued Cheal-E1 stoppage and the addition of the stoppage of the Cheal-E2 well, oil and gas production was significantly less from October 2020 to early August 2021. Only three wells, the Cheal-E5, E6 and E8 were fully producing for Q1/2022. During Q2/2022 all five wells the Cheal-E1, E2, E5, E6 and E8 were producing.
During Q4/2022 the Company produced 18.3 Mbbl oil and 11.6 Mmcf gas. compared to 19.5 Mbbl oil and 15.1 Mmcf gas during Q3/2022. The decreases were a result of both the Cheal E-5 and Cheal E-6 wells going offline for the last month of Q3. The Cheal E-5 went down due to a downhole related issue which appears to be parted rods. Workover planning is currently underway with a full workover being scheduled for the end of Q2/2023. The Cheal E-6 went offline due to downhole related issues which appears to be a wax plug. The operator carried out rod work and installed a new pump while the well was off line. The Cheal E-6 started back on-line near the end of March 2022.

Romania

The four concessions have specific mandatory work programs (the “Romania Work Programs”), which were estimated at US $63,000,000 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
As operator, NIS has reported resumption of exploration and production activities in the EX-2, EX-3, EX-7 and EX-8 exploration blocks in Romania. EWP has a 15% carried interest during the commitment work programs in all four blocks which includes for the drilling of a total of twelve exploration wells (three per block). It should be noted that all activities are dependent on securing the necessary government and local approvals.

Blocks EX-2 and EX-3

Interpretation of seismic data has continued although no commercially viable exploration prospects have been identified to date. NIS has proposed to request an extension of the exploration periods beyond the contractual maximum of ten years while the prospectivity of the blocks is under review. No commitment wells have been drilled to date in either block.

Block EX-7

Two phases of testing have been performed on exploration well BVS-1000. Despite fracture stimulation in the second testing phase, oil production from the well has rapidly declined to currently around 30 bopd. NIS consider the well has invalidated the pre-drill subsurface geological model and re-interpretation of the prospect is underway prior to a decision to either suspend or abandon the well. Deviated appraisal well, Teremia-1001, drilled on the Teremia North Field, has been completed as a production well after a period of experimental production testing. All work program commitments in the block have been met.

Block EX-8

Testing of exploration well Pesac-1000 has been completed although with negative results. Deviated appraisal well Teremia-1002, drilled on the Teremia North Field, has been completed as a production well after a period of experimental production testing. Exploration well, Teremia-1201, was drilled to test a possible extension to the Teremia North Field but failed to encounter hydrocarbons. It was subsequently sidetracked into the Teremia North Field in 4Q/2021 and has now been completed as a production well and renamed Teremia-1004.

There have been several meetings of both the technical and operating committees to discuss work program results and determine whether the Teremia North field is a commercial discovery. At the operating committee meeting held

February 8, 2021 NIS voted that there was a commercial discovery at Teremia North whereas the Company voted that there was not a commercial discovery. The field economics were, in the Company’s assessment, marginal and did not merit the significant capital contributions required. NIS, being a vertically integrated oil and gas producer, could support the development costs given the internal economies available.

Without a joint declaration of a commercial discovery it is the Company’s position that commercial development of the field cannot proceed, NIS did not share this opinion. Rather than litigating this issue the discussions continued with NIS in an attempt to find a way forward. Given the consequences of a commercial discovery decision and significant funding obligations the Company and NIS continued negotiations on all available options including a monetization event. Negotiations were progressing well and the parties were moving towards final documentation with essential terms of a monetization event agreed, being some limited cash and a royalty interest.

The outbreak of war between Ukraine and Russian brought all attempts to implement the agreed terms to a halt, with the issue being that NIS is owned, in part, by a Russian entity which is subject to sanctions. The Company is considering what steps could be implemented to allow the transaction to proceed.

Total sales revenues decreased by 39%, from $644,832 in Q3/2022 to $396,309 in Q4/2022 primarily due to a 54% decrease in sales volume, from 6,681 BOE in Q3/2022 compared to 3,067 BOE in Q4/2022. The decrease in sales volume is primarily due to the Cheal E-5 well being shut-in for repairs during Q4/2022.

Total sales revenues increased by $37,091 from $359,218 in Q4/2021 to $396,309 in Q4/2022. The increase is primarily attributed to the increase in the average realized price per BOE from $71.96 in Q4/2021 to $129.22 in Q4/2022.

The Company’s share of expected exploration and development permit obligations and/or commitments as at March 31, 2022 are approximately $660,000 to be incurred during fiscal 2023 and $16,000 over the next five years. The Company may choose to alter the program, request extensions, reject development costs, relinquish certain permits or farm-out its interest in permits where practical.
 
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East West news release shortly after financial results came out. It's basically identical to the summary that was posted. The key now is for the company to complete that royalty deal with NIS of Serbia for the million acre lease in Romania, along with continuing to build cash from their oil production in New Zealand, which goes for Brent pricing.

 
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Some very important articles have come out over the last 2-6 weeks regarding NIS/Serbia and EU sanctions, which could stifle growth in Serbia due to higher gas prices, as well as damage some of the country’s strongest businesses. Based on the articles below, it is quite likely that a deal will occur by November 2022 or sooner, which is when the sixth EU sanction package against Russia takes effect and will hurt Serbia. All that needs to occur is for Gazprom(56% shareholder of NIS) to reduce their stake to 49.9% or less(under 50%) and then all sanctions can be avoided. This will then allow NIS and East West to complete their deal, as stated in EW’s news release and MD&A.

May 2022 – Verification of EW/NIS leases and that they will be going into production

https://www.profit.ro/povesti-cu-profit/energie/vanzarile-de-produse-petroliere-ale-filialei-gazprom-in-romania-au-crescut-de-2-5-ori-in-pofida-razboiului-din-ucraina-20711577

"NIS Petrol Romania has in its portfolio six oil and gas perimeters on the territory of Romania, with operator status in all of them . Four concessions are for exploration-development and exploitation activities in partnership with the Canadian company East West Petroleum (two in Bihor county – EX-2 Tria and EX-3 Băile Felix and two in Timiș county – EX-7 Periam and EX-8 Biled ). A fifth concession is held in partnership with Zeta Petroleum and Armax Gaz, namely the oil development and exploitation concession in the perimeter of DEE V-20 Jimbolia, Timiș county. The sixth concession for exploration-development-exploitation activities is also located in Timiș County, in the EX-12 Crai Nou perimeter."

July 14 2022 – "Serbian President announces potential of Serbia taking Russian stake in NIS to avoid problems from Sanctions"

https://balkaninsight.com/2022/07/14/serbia-mulls-taking-over-mainly-russian-owned-oil-company/

July 29 2022 – NIS Financial results, showing growth of production in Romania. Some of that revenue is likely from EW’s JV lease, which means that the royalty deal pending would start to pay out right away, once completed.

https://ir.nis.rs/fileadmin/template/nis/pdf/Reporting/BusinessReports/English/QR_Q2_2022_eng.pdf
 
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East West Petroleum Corp Q1 2022 Results. All Information Is Available On Sedar.

Symbols: EW (Canada) – EWPMF (USA) – 37A (Frankfurt)
Prices (August 29, 2022): $0.10CAD - $0.075USD - €0.06EUR
Shares Outstanding: 89,585,665
Options: 2.79 Million (Between $0.06 and $0.135)
Warrants: Nil

Allowable Capital Losses: $8,440,000
Non-Capital Losses Available For Future Periods: $28,550,000
Canada: $17,329,000 from 2026-2042 & New Zealand: $11,221,000 No Expiry Date
**See Audited Results For More Details**

Financials

ASSETS
Cash: $5,044,036
GST Receivable: $5,129
Amounts Receivable: $592,173
Oil Inventory: $145,663
Prepaid Expenses: $25,260
Property, Plant & Equipment: $269,156
Total Assets: $6,081,417

LIABILITIES
Accounts Payables: $540,255
Decommissioning Liabilities: $1,102,282
Total Liabilities: $1,642,537

Q1 2022 Performance
Revenue: $1,016,787
Net Income: $250,011

Q1 2022 MD&A Highlights

New Zealand

The Company has operations in the Taranaki Basin of New Zealand. All licenses were previously operated by the Company’s original partner, TAG Oil Ltd. (“TAG”), and all wells are targeted shallow Miocene targets in the Urenui and Mt. Messenger formations which have been shown to be productive for oil and gas throughout the Basin, including the Cheal field. The Company holds a 30% working interest in the Petroleum Exploration Permit (“PEP”) 54877 and the Petroleum Mining Permit PMP 60291 (“Cheal East”) and TAG held the remaining 70%. In September 2019 TAG completed the sale of substantially all of its Taranaki Basin assets and operations which included their interest in PEP 54877 and PMP 60291 to Tamarind Resources Pte. Ltd. (“Tamarind”). In light of TAG’s decision to sell the majority of its interest in the Taranaki Basin assets the Company assessed its options with respect to its 30% interest in Cheal East and, on June 24, 2019, the Company signed a heads of agreement pursuant to which the Company had agreed to sell its 30% interest in PEP 54877 and PMP 60291. On August 1, 2020 the Company terminated the Definitive Agreement. The Company continues to assess its go-forward plans, which includes the possible sale of its New Zealand concessions to other buyers.

During fiscal 2022 Cheal conducted a detailed prospectivity review of PEP 54877 and advised the Company that the forecasted economic prospects of PEP 54877 does not meet Cheal’s internal risk criteria. Although no final decision has been made to relinquish the permit in December 2022, the Company determined to record an impairment of $1,627,056 for costs incurred to March 31, 2022.

During Q1/2023 the Company produced 18.1 Mbbl oil and 15.7 Mmcf gas compared to 18.3 Mbbl oil and 11.6 Mmcf gas during Q4/2022. The Cheal-E5 was offline for all of Q4/2022 and Q1/2023. The Cheal-E5 went down due to a downhole related issue which appears to be parted rods. A full workover of the Cheal-E5 well was completed during Q1/2023 and the Cheal-E5 came back on line on June 30, 2022. Approximately 385 bbls of kill fluid needed to be recovered after the workover and oil production started again on July 7, 2022. The Cheal-E6 went offline during Q3/2022 due to downhole related issues which appears to be a wax plug. The operator carried out rod work and installed a new pump while the well was off line. The Cheal-E6 started back on-line near the end of Q4/2022 and was fully producing for all of Q1/2023.

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 $63,000,000 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.

Without a joint declaration of a commercial discovery it is the Company’s position that commercial development of the field cannot proceed, NIS did not share this opinion. Rather than litigating this issue the discussions continued with NIS in an attempt to find a way forward. Given the consequences of a commercial discovery decision and significant funding obligations the Company and NIS continued negotiations on all available options including a monetization event. Negotiations were progressing well and the parties were moving towards final documentation with essential terms of a monetization event agreed, being some limited cash and a royalty interest. The outbreak of war between Ukraine and Russian brought all attempts to implement the agreed terms to a halt, with the issue being that NIS is owned, in part, by a Russian entity which is subject to sanctions. The Company is considering what steps could be implemented to allow the transaction to proceed.

Total sales revenues increased from $290,042 in Q1/2022 to $1,016,787 in Q1/2023. The increase is attributable to a an increase in total sales volumes due to significantly higher production during Q1/2023 compared to Q1/2022. During Q1/2022 the Cheal-E1 well, which is the Company’s biggest producing well, and the Cheal-E2 well were offline due to blockages.

Commitments

The Company’s share of expected exploration and development permit obligations and/or commitments as at June 30, 2022 are approximately $620,000 to be incurred during fiscal 2023. The Company may choose to alter the program, request extensions, reject development costs, relinquish certain permits or farm-out its interest in permits where practical.

Outstanding Share Data

The Company’s authorized share capital is unlimited common shares with no par value. As at August 29, 2022 there were 89,585,665 outstanding common shares and 2,790,000 share options outstanding with exercise prices ranging from $0.06 to $0.135 per share.
 
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Today the European Union approved an acquisition by NIS, which is a positive sign for East West. Reason being that sanctions have held back NIS/EW from closing a royalty deal on a million acres of heavily developed Oil/Gas leases in Romania. This Royalty will be worth serious money once the deal is completed as it's going to generate revenue immediately. Gazprom still owns a majority stake in NIS and if the European Union allowed them to acquire HIPP, then acquiring EW's 15% in Romania shouldn't be an issue.


Mergers: Commission clears acquisition of HIPP by NIS
The European Commission has approved, under the EU Merger Regulation, the acquisition of HIP-Petrohemija LLC Pancevo (‘HIPP') by Naftna Industrija Srbije a.d. Novi Sad (‘NIS'), both of Serbia. HIPP is a petrochemical company active in the production and distribution of products such as ethylene, polyethylene and synthetic rubber. NIS is a vertically integrated energy company. The Commission concluded that the proposed acquisition would raise no competition concerns given the companies' moderate combined market positions resulting from the proposed transaction. The operation was examined under the simplified merger review procedure. More information will be available on the Commission's competition website, in the public case register under the case number M.10612. (For more information: Arianna Podesta – Tel.: +32 229 87024; Maria Tsoni – Tel.: +32 229 90526)
 
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Here's a snippet of another article that came out today and it mentions how the Serbian government could take NIS private this fall. This would make the sanction issue go away as well.


EU sanctions on Russian energy exports are likely to shrink Russia’s economic presence in the Balkans significantly, disrupting some of the flows of Russian oil and gas that have long been a mainstay of trade relations with the region. Serbia has ostentatiously resisted EU pressure to join the sanctions regime, which has had a negative impact on NIS, the country’s major oil company. Gazprom Neft until recently held the majority stake, which served as a key symbol of Russian political and economic influence in Serbia. However, Croatia plans to implement EU sanctions that will cut off NIS’s ability to import Russian oil starting in December. Due to fears of other secondary sanctions, Vucic has indicated that he may need to nationalize NIS this fall and sell Gazprom Neft’s remaining stake in the company to another buyer to keep it operational.
 
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East West Petroleum: Stocks trading at Less Than Cash Value on TSX-V (EW)

The Globe and Mail - Sun Sep 25, 7:02AM CDT

https://www.theglobeandmail.com/inv...-less-than-cash-value-on-tsx-v-ew/?ocid=edgsp

East West Petroleum is among the group of TSX Venture Exchange companies currently trading at less than cash value. This means companies whose current share price is less than the cash per share on their balance sheet or stocks with more cash than market cap. (Chart shows P/E of 4.009)

This report is generated monthly. It also shows the value of cash net debt per share to show how much cash per share would be left if the debt was paid off. Stocks in this category are held primarily for speculation. Companies can have more cash per share than the actual share price for a number of reasons including that they just raised capital, are in industries that experience high burn rates and will eat through the cash quickly or there is a lot of uncertainty about the future of the company. Companies earning a positive net income will have a price-to-earnings, or P/E, ratio greater than zero and are worth exploring in more detail.

More about East West Petroleum

East West Petroleum Corp is an oil and gas exploration and production company. It is engaged in exploring, developing and producing from its oil and gas properties. Its current portfolio is made up of exploration concessions in New Zealand and Romania.
 
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News Article - Serbia Won't Rule Out Nationalizing Its Oil Industry - Good For East West

This is good news for East West as it would allow the company to complete the cash & royalty deal mentioned in their management discussion information:

On page 4 of MD&A - Negotiations were progressing well and the parties were moving towards final documentation with essential terms of a monetization event agreed, being some limited cash and a royalty interest. The outbreak of war between Ukraine and Russian brought all attempts to implement the agreed terms to a halt, with the issue being that NIS is owned, in part, by a Russian entity which is subject to sanctions. The Company is considering what steps could be implemented to allow the transaction to proceed.

recent article - https://oilprice.com/Latest-Energy-...-Rule-Out-Nationalizing-Its-Oil-Industry.html
 
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East West Petroleum Corp Q2 2022. All information is available on Sedar.

Symbols: EW (Canada) – EWPMF (USA) – 37A (Frankfurt)
Prices (November 24, 2022): $0.075CAD - $0.055USD - €0.039EUR
Shares Outstanding: 89,585,665
Options: 400,000 @ $0.10 | 1,890,000 @ $0.06
Warrants: Nil

Allowable Capital Losses: $8,440,000
Non-Capital Losses Available For Future Periods: $28,550,000
Canada: $17,329,000 from 2026-2042 & New Zealand: $11,221,000 (No Expiry Date)
**See Audited Results For More Details**

Financials

ASSETS
Cash: $5,116,085
GST Receivable: $6,602
Amounts Receivable: $294,319
Oil Inventory: $110,014
Prepaid Expenses: $36,082
Property, Plant & Equipment: $230,009
Total Assets: $5,793,111

LIABILITIES
Accounts Payable: $289,284
Decommissioning Liabilities: $997,138
Total Liabilities: $1,286,422

Six Month Performance
Revenue: $1,670,890
Comprehensive Income: $317,820

(Only recent updates. Prior quarterly information is available on Sedar)

Romania

Without a joint declaration of a commercial discovery it is the Company’s position that commercial development of the field cannot proceed, NIS did not share this opinion. Rather than litigating this issue the discussions continued with NIS in an attempt to find a way forward. Given the consequences of a commercial discovery decision and significant funding obligations the Company and NIS continued negotiations on all available options including a monetization event. Negotiations were progressing well and a non-binding letter of intent was finalized. The parties were moving towards final documentation with essential terms of a monetization event agreed, being a cash payment of US $500,000 and a royalty interest of 2.1%, as defined. The outbreak of war between Ukraine and Russia brought all attempts to implement the agreed terms to a halt, with the issue being that NIS is owned, in part, by a Russian entity which is subject to Canadian government sanctions. The Company and NIS are working on the final documentation to implement the agreed terms once closing is possible.
 
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Just a little refresher for current shareholders and new investors regarding Romania:


The original deal struck between East West Petroleum and NIS in 2011 was that NIS would earn 85% interest in this 1,007,500-acre project by completing the first phase of work, having an estimated budget of $62,335,000 USD and proving production capabilities on the first part of the package.

This has been achieved and facilities + test production is going on as we speak at the moment, as per the most recent NIS financial report:


(see pages 5, 6, 24, 34) – All dialogue regarding Teremia is based on the land parcel with East West

Recently, East West made a deal with NIS to sell it’s remaining 15% stake in exchange for $500,000 USD and a 2.1% Royalty on production from anywhere on the 1,007,500-acre project, without any time or value cap. This makes sense because NIS is a multi billion-dollar company from Serbia and East West cannot keep up investing in such a large project. However, NIS can easily pay EW several million dollars a year from a royalty standpoint, in order to fully control and produce from this lease. Keeping in mind this is just the first phase of the project and there are many other drill targets to search for Oil/Gas.

What stops this deal from completing at the moment are sanctions from the Russia/Ukraine war. Gazprom owns a 56% stake in NIS, which doesn’t allow for the deal to be completed. In the meantime, Serbia has looked at either selling Gazproms stake in the company, or nationalizing NIS. This is because sanctions will begin for Serbia soon, based on association with Gazprom, and NIS is the largest company in country. Either solution would allow for the deal to be completed.

In the end, this royalty has tremendous value because it allows East West to generate cash flow from the lease, without any production cost risk. Payments will vary somewhat from quarter to quarter, but it would continue for quite some time.
 
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