East West Petroleum Ends Fiscal Year 2015 With Record Revenues and Strong Financial Position
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 30, 2015) - International oil and gas producer East West Petroleum Corp. (TSX VENTURE:EW) is pleased to announce its financial and operating results for the 12 months ended March 31, 2015. Copies of the Company's audited financial statements, management discussion and analysis, and information pursuant to National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities have been filed on the SEDAR website at www.sedar.com. For additional information, please visit East West's website at www.eastwestpetroleum.ca.
Financial and Operating highlights for FY2015
Total revenue increased 54% in FY2015 to a record $6.5 million.
Cash balance at year end of $8.4 million, working capital balance of $8.9 million and no debt.
Average net daily production volumes of 264 boepd (76% oil) in FY2015 and 296 boepd (72% oil) in Q4/15.
Strong average netbacks per barrel of $56.76 in FY2015 and $42.01 in Q4/15, despite weak commodity prices, contributed to net cash from operating activities of $1.7 million in FY2015.
Completion of the TAG Oil Ltd. owned and operated Cheal E to Cheal A pipeline in May, which will allow EW to monetize future oil and gas wells drilled in the Cheal-E development area, sell previously flared gas generating additional revenues and lowering operating costs through facility optimizations.
David Sidoo, President and CEO of East West commented, "We are extremely pleased to report record revenues from our producing properties in New Zealand despite a challenging end to the year in oil prices. East West is well positioned heading into fiscal 2016 with no debt and cash balances well in excess of future committed capital expenditures. For FY2016, we are looking forward to additional drilling in New Zealand and seeing the first well drilled in Romania. Finally, I'd like to thank our partners, TAG Oil Ltd. in New Zealand and NIS Petrol in Romania, for their hard work and dedication to our joint projects."
March 31, 2015 Year-End Reserves Summary
The Company's fiscal 2015 year end independent reserves report (the "Report") has been issued following an independent evaluation of the Company's producing oil & gas properties in the Taranaki Basin of New Zealand by Sproule International Limited ("Sproule") of Calgary, Alberta effective March 31, 2015. The Company's reserves were evaluated by Sproule in compliance with National Instrument 51-101 - Standards for Disclosure of Oil & Gas Activities ("NI51-101") and in accordance with the Canadian Oil and Gas Evaluation ("COGE") Handbook. Readers are referred to the Company's Form 51-101F1 Statement of Reserves Data and Other Oil & Gas Information for the year ended March 31, 2015, which can be accessed electronically from the SEDAR website at www.sedar.com, for additional information.
The following tables provide a summary of East West's petroleum and natural gas reserves as evaluated by Sproule effective March 31, 2015 in the Report using Sproule's forecast prices, costs, and foreign exchange rates as at March 31, 2015. It is important to note that the recovery and reserves estimates provided herein are estimates only. Actual reserves may be greater or less than the estimates provided herein.
Remaining Gross Reserves | |||
Reserves Category | Oil | Solution Gas | Total |
mbbl | mmcf | mboe | |
Proved Develop Producing | 51 | 58 | 61 |
Non-producing | 1 | 0 | 1 |
Proved Undeveloped | 21 | 30 | 26 |
Total Proved | 73 | 89 | 88 |
Probable | 133 | 190 | 164 |
Total Proved plus Probable | 206 | 278 | 252 |
Possible | 57 | 82 | 71 |
Total Proved plus Probable plus Possible | 263 | 360 | 323 |
Notes:
"Gross Reserves" are Company's working interest reserves before the deduction of the royalties
The numbers in this table may not add exactly due to rounding
About East West Petroleum Corp.
East West Petroleum (www.eastwestpetroleum.ca) is a TSX Venture Exchange listed company established in 2010 to invest in international oil & gas opportunities. East West has built a diverse portfolio of attractive exploration assets covering a gross area of over one million acres. The Company has its primary focus on two key areas: New Zealand, where it has established production and cash flow and is evaluating a low risk exploration play, and Romania where it is fully carried on an upcoming high impact 12 well exploration program. In New Zealand, East West holds an interest in three exploration permits near to existing commercial production in the Taranaki Basin, operated by TAG Oil Ltd. (TAO.TO). The Company also has interests in four exploration concessions covering 1,000,000 acres in the prolific Pannonian Basin of western Romania with Naftna Industrija Srbije ("NIS").
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the ability to raise sufficient capital to fund exploration and development; the quantity of and future net revenues from the Company's reserves; oil and natural gas production levels; commodity prices, foreign currency exchange rates and interest rates; capital expenditure programs and other expenditures; supply and demand for oil and natural gas; schedules and timing of certain projects and the Company's strategy for growth; competitive conditions; the Company's future operating and financial results; and treatment under governmental and other regulatory regimes and tax, environmental and other laws.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity. Best estimate resources are considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term is a measure of central tendency of the uncertainty distribution (most likely/mode, P50/median, or arithmetic average/mean). As estimates, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources that the estimated reserves or resources will be recovered or produced.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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.
