East West Insights

On December 19, 2011, East West Petroleum Executive Chairman & Director, David Sidoo, was interviewed by Mark Cullivan, Editor of Resource Stock Digest. In the interview, Mr. Sidoo provides shareholder updates on current company operations and future targets, including the rationale for extracting from planned operations in Egypt while maintaining a strong relationship with Kuwait Energy. With several projects on the go and others rolling out in the new year, Mr. Sidoo gives shareholders strong reasons to be excited about the future with East West Petroleum.

Listen to the interview here.

Listen to David Sidoo's interview by Mark Cullivan.

Earlier this fall, East West Petroleum President & CEO Greg Renwick and Executive Chairman & Director David Sidoo journeyed to Morocco to participate in a signing ceremony for new exploration blocks EWP acquired in Morocco.

The agreement sees EWP in partnership with the Office National des Hydricarbures et des Mines (ONHYM) to explore the blocks for oil and gas over an eight year period.

“The Doukkala Block award represents the Company’s first entry into Morocco,” said Greg Renwick, EWP President and CEO, “and we look forward to working with our new partner ONHYM in pursuing both conventional and unconventional resource plays.”

For more information, view the official press release from October 6, 2011.

Pictured left to right below are Greg Renwick, EWP President and CEO; David Sidoo, EWP Executive Chairman & Director; Christopher Wilkie, Canadian Ambassador in Morocco; and Zouhair Kanouni,Trade Commissioner of Canada in Morocco.

David Sidoo, EWP Executive Chairman & Director shaking hands with ONHYM Director General, Mrs. A. Benkhadra. Also pictured (below) are ONHYM Director and Head of Operations, Mme Wafe Benhammou; Greg Renwick, EWP President and CEO; Christopher Wilkie, Canadian Ambassador in Morocco; and Zouhair Kanouni,Trade Commissioner of Canada in Morocco.

ONHYM Director and Head of Operations, Mme Wafe Benhammou; Greg Renwick, EWP President and CEO; Christopher Wilkie, Canadian Ambassador in Morocco; and Zouhair Kanouni, Trade Commissioner of Canada in Morocco.

On Monday, November 21, EWP announced another exciting contractual agreement, this time focused on North America, Europe and a few other geographic areas. EWP has struck an agreement with Halliburton – one of the major players in the energy industry – that will combine Halliburton’s expertise and manpower with EWP’s non-conventional focus.

Halliburton was founded in 1919 and has presence in more than 60,000 employees in 80 countries around the world.  With nearly twenty Technology Awards and Recognitions since 2009 alone, Halliburton’s innovative approach to the industry is an exciting match for EWP. This extensive network is an exciting connection for EWP and both companies are delighted to be working together.

Contributions are a significant element of Halliburton’s Corporate Responsibility and include the following, as reported on Halliburton’s website:

In 2010, the company donated more than $3.4 million to support community initiatives.

Below are some examples of ways we show our commitment to our communities:

Observing Earth Day – On Earth Day, the company partners with local organizations and media in observance of the international environmental awareness day.

Building homes with Habitat for Humanity – For years, the company has supported the development of affordable homes – and a future – for many in need.

Donating cutting-edge technology software through Landmark – In 2010, in-kind contributions of software through Landmark totaled more than $5.96 billion. The software is being used as learning and teaching aides. Students studying engineering and geosciences disciplines gain valuable hands-on experience in new and emerging technologies critical to the energy industry.

Building schools in Egypt – Two schools have been built in Giza and three in El Fayoum – providing access to education for young girls and building a solid foundation for a better future.

Supporting sustainability in Angola – Monetary donations go toward supporting teachers, obtaining much-needed classroom equipment and raising health and environmental awareness to impact communities throughout Angola.

EWP is very much looking forward to developing this agreement with Halliburton and forging new ground together in the oil and gas industry.

For three days in mid-November the EWP Board of Directors retreated to the Phoenician Hotel in Phoenix, AZ to strategize Oil and Gas operations for the fast-approaching 2012 year.

The meetings resulted in intense and productive discussions regarding operational phases for EWP as well as asset development in early 2012. “We are excited to enter a new phase of production an new projects in North America and elsewhere in the world,” said EWP Director David Sidoo. “Further, we’re very much looking forward to building shareholder value through new acquisitions and development of current assets from exploration to development.”

Pictured are EWP VP of Engineering, Barry Chovanetz; President, Greg Renwick; CFO, Nick Demare; Director, Honorable Herb Dhaliwal; and Chairman and Director, David Sidoo.

EWP VP of Engineering, Barry Chovanetz; President, Greg Renwick; CFO, Nick Demare; Director, Honorable Herb Dhaliwal; and Chairman and Director, David Sidoo.

Followers of EWP very likely share in our excitement over the recently announced cooperation agreement with Naftna Industrija Srbje j.s.c Novi Sad (NIS), a subsidiary of Russia’s GazpromNeft, to conduct exploration and production operations on develop EWP’s four Romanian concession areasexploration blocks in western Romania.  The May 24, 2011 announcement represents the result of several months of effort for EWP executives.

The precursor to this development occurred more than a year ago when EWP (then known as Avere Energy Inc.) was officially awarded the exploration blocks, estimated to be approximately 1 million acres, by the Romanian National Agency of Mineral Resources (NAMR).

Last month, East West Petroleum President and CEO Greg Renwick met with NAMR executives in Romania for the official signing of the concessions to East West.

The photographs below captured the highly anticipated ceremony. Present in the first photograph are, from left to right:

Emilian Ijdelea, Counsel to EWP

Alexandru Patruti, President, National Agency for Mineral Resources

Gregory Renwick, President and CEO EWP

Dorin Cojocaru, Director General, Resource Management & Contract Negotiation Division, National Agency for Mineral Resources

Alia Mekkaoui, CFO, National Agency for Mineral Resources

Veronica Jitariuc, In-house Counsel, National Agency for Mineral Resources

Mihai Spataru, Senior Expert, National Agency for Mineral Resources.

Exciting New Development in Romania – Spotlight on CSR with NIS

On May 24, EWP was very pleased to announce a new cooperation agreement with Naftna Industrija Srbije j.s.c. Novi Sad (NIS). The agreement will see the two companies working together on exploration blocks in the Pannonian Basin in the western region of Romania.

With this exciting announcement hot off the wire, what better time to highlight the Corporate Social Responsibility activities and initiatives embraced by NIS in its homeland of Serbia. NIS believes that “corporate industrial development would be impossible without a balanced and responsible attitude towards the society.”

With core CSR beliefs in place, NIS has established a core set of five focus programs for corporate sponsorship and donation to give back to Serbian communities:

Energy of Sport

• promotes sports and a healthy way of living
• supports the most successful sports clubs and youth sports

Culture Without Borders

• supports important national cultural events and festivals in different regions of Serbia
• supports cultural cooperation between Russia and Serbia

Cooperation-based Development

• support and development of social infrastructure for municipalities in which NIS operates

Science and Young Talents

• support and development of science potential for faculties in the same area of expertise;
• support for research and scientific discoveries
• development of talented pupils and students.

Humanitarian Donations

• supports underprivileged citizens, social organizations and individual victims.

*Source: http://www.nis.rs/index.php?option=com_content&view=article&id=178&Itemid=219&lang=en

In addition, NIS has incorporated a comprehensive Environmental Protection Policy into its corporate ethos, which includes minimizing harmful effects from production activities, increasing environmentally sound fuel options and protecting/renewing natural resources. NIS’ strategic goals related to Environmental Protection include creating an organizational culture that upholds environmental stewardship, aligning business processes with international and domestic environmental standards, and partnering with national institutions responsible for Environmental Protection Standards.

East West is very much looking forward to working with NIS, a company that has very clear focus and direction when it comes to social and environmental impact.

Learn more about East West’s exploration in Romania here.

David Sidoo
Chairman
East West Petroleum

Earlier this month East West announced a major exploration award, in which EWP is partnered with the three major petroleum corporations in India.

“India is a place where I have wanted to do business for many years,” stated Chairman, David Sidoo. “Herb [Dhaliwal] and I, being Indian and being successful business men, wanted to invest in the resources and transfer the technology that can unlock some of the massive reserves the country has. Furthermore, we wanted to assist India in its energy needs.”

While East West’s exploration in India may ultimately contribute to a much-needed growth of gas production in the country, the two EW Board Members also have a more personal contribution underway.

Mr Sidoo and Mr Dhaliwal have elected to give back to communities in India by providing clean water and sanitation to areas that were otherwise lacking. “Both Herb and I currently have a program that helps bring clean water to villages near our hometowns,” shared Mr Sidoo. “We are very interested in giving back to the communities and areas that are dear to our hearts.”

The program is run through a New Westminster, BC based organization called Indo-Canadian Friendship Society of British Columbia (ICFSBC).  For more than ten years, the organization has spearheaded several Village Life Improvement Projects in the Punjab area of India for which the Punjab government has provided matching funds.

As of 2011, ICFSBC will have upgraded 14 villages with an underground sewage system, piped clean water with access to each household, paved roads, solar street lighting and a sewage treatment plant. Some will also have computer services, including education, and a community centre. The two main cities near the villages completed in Punjab are Jullunder and Phagawara.

Punjab has a population of 20 million. Typical villages lack clean piped drinking water and there is no management of the wastewater. Open drains with raw sewage are an invitation to flies and mosquitoes, and innumerable diseases. Computer education in the villages is non-existent. Other civic amenities taken for granted in the west are non-existent.

Source: ICFSBC

Additional program goals include creating parks and a playground; planting trees in and around the village; establishing an underground telephone and electrical system where possible and teaching the benefits of good hygiene, sanitation, computer knowledge and environment.

Studies indicate that the impact of the Village Life Improvement Projects is significant including improved health – the decrease or elimination of 30% of infectious and parasitic diseases which are totally absent or rare in the developed world; and, increased productivity – development of computer skills, improved agriculture knowledge, increased connectivity to the rest of India and the world.

Visit the ICFSBC website for more information about this and other projects and to view a gallery of before/after photos from Village Life Improvement Project work.

An interesting article regarding Herb Dhaliwal and ICFSBC in India published in the March 2006 edition of India Today.

Posted By East West

On April 4, 2011 East West announced that it was awarded 10% interest in an exploration block in India’s Assam-Arakan Basin. East West will be in partnership with India’s leading petroleum companies – Oil India Ltd (OIL), Oil and Natural Gas Corporation of India (ONGC), and Gas Authority of India Ltd (GAIL).

In keeping with East West’s interest in Corporate Social Responsibility, we are pleased to share the community-focused initiatives of our partners in India.

Oil India Ltd understands and puts priority on the value of giving back to the community in the OIL’s areas of operation, which is reflected in the vision statement posted on its website, “OIL is a Responsible Corporate Citizen deeply committed to socio-economic development in its areas of operation.”

The following are just a sampling of the community initiatives in OIL’s operational areas:

• Area Development Scheme: constructed more than 100 bridges and 1400kms of roads and provided financial assistance to the majority of educational institutions in OIL’s operational areas in Assam.
• Mobile Hospital Services: doctors and paramedics address basic medical needs of villages
• Education: financial assistance to more than 350 educational institutions in Upper Assam
• Socio-Cultural, Youth and Women’s Organizations: financial assistance to numerous women’s organizations and youth sporting groups; development of village playgrounds
• Project Rupantar: helps unemployed youth create sustainable employment opportunities via self-employment and entrepreneurship
• Oil India Rural Development Society: provides assistance and technical guidance in agricultural development to farmers; trains women in handicraft, weaving, embroidery and tailoring

*Source  http://www.oil-india.com/CSR.aspx

OIL has received awards for its extensive Corporate Social Responsibility program, which you can read more about at the link above.

Oil and Natural Gas Corporation of India has Corporate Social Responsibility entrenched in its culture, with 2% of its net profits being directed into CSR initiatives, including welfare, health, education, culture, and more.

The following examples of ONGC’s community initiatives demonstrate why the company has received awards for its contributions:

• Greening Initiative of Southern Ridge, New Delhi
• TERI-ONGC “Soldiers of the Earth” Project: environmental awareness program aimed at children and young adults
• Skill-based vocational computer training: five centres to provide free computer education for youth to promote job search / entrepreneurship
• Cultural heritage videos: promoting select topics of India’s cultural heritage
• Education program for girls: to ensure that marginalized children have education opportunities
• Multi-specialty hospitals
• Hemophelia Federation of India: supports education for children with Hemophelia
• Mobile Medicare Units: to provide community-based health care services for vulnerable elder populations and others
• Renewable energy for solar water pumping and home lighting
• Mokshda Green Cremation System: energy efficient and environmentally friendly cremation system
• Conservation of ancient monuments: through support of Archaeological Survery of India

*Source 2009-2010 Annual Report

Gas Authority of India has embraced Corporate Social Responsibility as a fundamental part of its corporate structure, as reflected on its website, “Today CSR and sustainability development [are] accorded high priority in the organizational ethos and attempted to be interwoven into all the business activities and the projects that are being undertaken by the company.”

GAIL has seven “thrust” areas in which it focuses its Corporate Social Responsibility resources. They are listed below along with a selection of initiatives for 2010-11:

• Community Development: reconstruction and renovation of public utilities/buildings; vehicles to distribute meals to children in government schools; night shelters & blankets; adoption of orphans; school bus for physically challenged students
• Drinking Water & Sanitation: providing bore-wells, tube-wells, hand-pumps, overhead tanks and storage facilities for potable water; development of sanitation systems
• Literacy Enhancement & Education: skill development and vocational training; medical aid, equipment, training, special education for physically and mentally challenged children; non-formal education centres for out-of-school children; women’s empowerment programs
• Environment Protection: planting saplings & trees in operational areas; rainwater harvesting & ground water reuse systems; New Delhi has-based crematorium; solar lights in rural areas; environment parks in slums
• Health Care / Medicine: upgrading existing medial centres & establishing community hospital; medical & specialist camps in rural areas; ambulances & mobile health outreach programs; GAIL hospitals extend medical care to local villagers
• Infrastructure: constructing village roads, culverts, community toilets & other facilities; constructing community centres and approach roads; specialized training centre at Assam and Guna
• Skill Development / Empowerment: education infrastructure support for classrooms, playgrounds, lab equipment; sponsoring marginalized students for specialized coaching & training; mobile computer lab with instructor to bring computer awareness to villages; mid-day meals for students; hearing aids; special software for visually challenged children

*Source http://www.gailonline.com/final_site/aboutcsr.html

GAIL is an undertaking of the Government of India and as such is closely tied to supporting the needs of the communities in which it operates.

East West is honoured to partner with the largest oil and gas companies in India. We’re delighted to share with you the detailed steps each of these corporations has taken to ensure community improvements in their respective areas of operation. Some very strong CSR modeling here!

Coming up next: EWP Board Members Giving Back in India

David Sidoo
Chairman
East West Petroleum

This month we’ll delve deeper into East West partner Kuwait Energy Corporation’s Corporate Social Responsibility mandate – with a focus on Egypt.

KEC holds working interest in five areas in Egypt including the 72 sq km Burg El Arab (BEA) field located in western Egypt. In December 2010, East West announced the purchase of 20% working interest in the BEA field in conjunction with the Kuwait Energy partnership.

KEC positions Corporate Social Responsibility “at the heart” of its organization, and KEC’s extensive contributions to communities in Egypt are strong examples of putting that corporate code into practice. KEC has worked with the following charitable organizations in Egypt to give back to the communities in areas in which it operates:

• Al-Shoban Al Moslemeen Foundation: during the month of Ramadan worked with the foundation to donate food to underprivileged people in the Ras Gharib Area where KEC operates.
• Certified charities in Egypt: sponsor the education of orphan children
• Certified charities in Egypt: sponsor families living below the poverty line
• Certified charities in Egypt: sponsor the medical treatment of poor families
• Resala Charity Foundation: coordinated a campaign to recycle paper and tires.

*Source: www.kuwaitenergy.com.kw/Default.aspx?pageId=244

A closer look at Resala’s recycling initiatives:

Before recycling was introduced, paper refuse was disposed of either by burial or burning, both of which are environmental pollutants. Because Egypt imports raw materials to make paper products, recycling reduces the volume of raw materials as well as the energy required for paper production.

Resala is an impressive volunteer organization that was created ten years ago by Cairo University students who wanted to effect change in their community after being inspired by lectures from a Professor of Humanities. The charity has grown to become Egypt’s largest youth volunteer organization with more than 70000 registered volunteers, most of whom are in their 20s.

Watch this brief video to see a glimpse of Resala volunteers in action.

In the paper-recycling program, Resala volunteers pick up unwanted paper, including books and magazines, and sort through the items to determine what can be reused and what should be recycled. Reusable paper and books are funneled into Resala’s libraries and education programs, while waste is sold to recycling facilities.

All proceeds from recycling are directed into the many community programs serving marginalized individuals. Resala programs include orphanages; care for the blind; food, education and support for families in need; literacy projects; used clothing collection/distribution; food bank; distribution of donated medicine; blood bank; computer centre; and much more.

Read this article for more insights into the significant change that Resala’s recycling program has effected in Egypt.

Kuwait Energy operates with Corporate Social Responsibility as one of its core principals, which results in significant community impact by supporting organizations like Resala. East West is very pleased to be partnered with KEC in Egypt knowing that numerous communities benefit from KEC’s social consciousness.

Learn more about East West initiatives in Egypt here.

Next month: EWP Board Members Giving Back in India

David Sidoo
Chairman
East West Petroleum

East West is pleased to have partnered with Kuwait Energy Company – an organization that exemplifies strong Corporate Social Responsibility. In this first look at KEC’s practices to give back to the areas in which it operates, we’ll focus on Ukraine.

KEC holds three gas, condensate and oil fields in the Dneiper-Donets basin in Ukraine: Bilousivska-Chornukhynska, North Yablunivska and Dubrivska. These three fields will be studied in partnership with East West Petroleum in order to determine the viability of unconventional technologies in the area.

The Dnieper-Donets Basin cuts a swath running northwest to southeast through central and eastern Ukraine and is the most prolific gas basin in the country. Since acquiring blocks in the Basin, Kuwait Energy has made significant contributions to numerous communities throughout the area, including the following:

Chornuki (Chornukhy) Region

• Road repair
• Constructed Pokrov Church
• Reconstructed the Center of Social Protection
• Renovated a regional hospital
• Renovated the village boiler house
• Provided Christmas gifts for local school children

Mirgorod (Myrhorod) Region

• Renovated a regional hospital and reconstructed a water supply system
• Reconstructed street lighting
• Provided Christmas gifts for local school children

Sencha Region

• Constructed water well
• Renovated Sencha village school
• Provided Christmas gifts for local school children

Other Initiatives:

• Gasification of Bilousivka village
• Renovated Khartsivka village kindergarten heating system
• Purchased sports equipment for Bilousivka village school
• Heated Bilousivka village council
• Reconstructed sewage and water supply system for Bodakva village school
• Constructed the heat-generator station for Zuivka village school
• Established program “School Bus” – transportation for school children in the Lokhvitsa and Chornukhi regions
• Improved Shahvorostovka village cemetery

*Source: www.kuwaitenergy.com.kw/Default.aspx?pageId=244

East West is very pleased to partner with a company like Kuwait Energy that is clearly focused on bringing value into the areas in which it operates.

Learn more about East West’s research and exploration in KEC’s Ukraine blocks here.

Next posting: KEC’s Corporate Social Responsibility focused on Egypt.

David Sidoo
Chairman
East West Petroleum