East West Petroleum Corp. (TSX VENTURE:EW) (the "Company"), is pleased to announce that following publication in the Official Gazette of Romanian No 0721, the Company has received formal ratification of the remaining three blocks awarded in the Romania 2010 10th Bid Round.
The Baile Felix (EX-3), Periam (EX-7) and Biled (EX-8) have now been officially passed into law. With these three blocks, and the Tria (Ex 2) block ratified in December 2012, the Company's active gross acreage position in Romania is now approximately one million acres. According to the terms of the October 2011 farm out agreement with Naftna Industrija Srbije j.s.c. Novi Sad ("NIS"), NIS will earn an 85% interest by contributing 100% of the costs through the mandatory Phase 1 and optional Phase 2 exploration periods. East West will retain a 15% carried interest across all blocks through Phase 1 and Phase 2.
The minimum Phase 1 exploration mandatory program across all four blocks includes the acquisition and interpretation of 2D and 3D seismic data and the drilling of three wells per block, for 12 wells in total over the next two years.
Seismic acquisition is currently underway on the Tria concession in preparation for drilling of the three commitment wells, with seismic acquisition to commence shortly on Baile Felix, Periam and Biled. NIS and the Company will be targeting conventional reservoirs using conventional technology and will not be targeting shale formations.
The Pannonian Basin in western Romania, Hungary and Serbia is a proven oil & gas region with production from numerous conventional discoveries. The region is characterized by a number of production horizons and both structural and stratigraphic traps. East West and NIS are confident in the prospectivity of the licenses and have already identified a number of initial leads based on existing data.
Mr. David Sidoo, President and CEO commented, "We have been working diligently with all stakeholders to reach this key milestone. On behalf of our management, our Board and our shareholders, we wish to thank all parties that have assisted in the ratification process. In particular, we would like to extend our appreciation to the Romanian National Agency for Mineral Resources and its officials for their support and assistance through the ratification process. We look forward to advancing our exploration work programs and continuing to work with NAMR, community leaders in western Romania, and all stakeholders to implement the work programs to identify and develop conventional petroleum resources in Romania."