Projects

 

Russia Ukraine Romania Egypt Yemen India

The Company’s business plan is to grow reserves and production through a two-pronged strategy of securing conventional reserves and production with upside potential, while positioning the company to successfully capture and exploit large acreage positions in high impact unconventional oil and gas plays. The strategies being employed to achieve these objectives include taking non-operated equity positions in producing assets with clear upside potential, aggressive pursuit of acreage positions in areas where the Company has identified untapped unconventional potential, and building strategic relationships with a limited number of firms which have already secured conventional and unconventional exploration and production acreage but do not have the expertise to unlock this value through the application of unconventional technologies.

East West Petroleum has established exploration and production assets in two countries: Canada and Egypt. In September, 2010, the Company acquired a participation interest in the Carbon oil and gas producing property in Alberta, Canada. This small, $1.125 million transaction was executed to meet the TSX Venture Exchange’s conditions for re-listing as a Tier 2 oil and gas company. The property delivers positive cash flow to the Company. In November, 2010, EWP acquired a 20% participation interest in the Burg el Arab oil Field in the western desert of Egypt. This asset provides the Company with immediate production of approximately 100 bopd which is forecast to grow substantially once appraisal and full field development is completed.

In addition to these two established producing properties, the Company was informed by the Romanian Government in July, 2010 that it was high bidder for four, large, exploration blocks covering approximately 4000 sq. km. (988,000 acres) in the Pannonian Basin of western Romania. These large, prospective exploration blocks lie within a well-established oil and gas producing region of Eastern Europe and hold significant conventional, plus unconventional potential. The company expects to receive final concession approval from the Government in 2011, at which time exploration operations will commence. The Company intends to enter into partner arrangements to manage exploration risk and reduce its financial exposure.

Also in November, 2010 East West Petroleum entered into an exclusive partnership with Kuwait Energy Company whereby the firms agreed to work together to assess the unconventional oil and gas potential of a total of 13 of Kuwait Energy’s upstream blocks in North Africa, the Middle East and Eurasia. Provided additional potential is documented, the Company will earn the right to negotiate for a share of KEC’s equity in the acreage. This alliance provides the Company with:

  • access to a large acreage position with proven petroleum systems and in some cases production.
  • access to acreage where E&P data collection and drilling activities have already proven or identified conventional and unconventional potential.
  • opportunities to study and enhance current production from conventional reservoirs through the application of certain unconventional technologies.
  • the right to negotiate for participation in Kuwait Energy’s conventional reserves and production as well as identified unconventional potential.
  • the opportunity to secure additional prospective acreage near the study blocks with a quality, rapidly-growing E&P firm.