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East West Petroleum Q3 Resultsm Released November 30th

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JonnyRBuck12   Tuesday, 12/01/20 11:15:39 AM
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East West Petroleum Q3 Resultsm 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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