Agreement for the Sale of New Zealand Oil & Gas Properties

Rhea-AI Summary

East West Petroleum Corp. has entered into an Interim Agreement for the sale of its oil and gas interests in New Zealand. The purchase price is US $1,000,000 and the effective date of sale is July 31, 2023. The purchaser will assume reclamation obligations of US $633,820 and there is contingent consideration of US $350,000 if an additional well is drilled and completed. A deposit of US $250,000 is required upon signing the definitive agreement. The transaction is subject to negotiation, execution of a definitive agreement, necessary government approvals, regulatory and exchange approval, and approval of East West shareholders.

Vancouver, British Columbia--(Newsfile Corp. - November 1, 2023) - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") reports that it has entered into an Interim Agreement ("Interim Agreement") for the sale of its oil and gas interests in New Zealand (the "Cheal Block").

The Company currently holds a 30% interest in PMP 60291 and the Interim Agreement contemplates the purchase of the Company's interest in the Cheal Block by the 70% owner. The key terms of the Interim Agreement are as follows:

1. Purchase price of US $1,000,000.
2. Effective date of sale is July 31, 2023.
3. Purchaser assumes all reclamation obligations, which are estimated to be US $633,820.
4. Contingent consideration of US $350,000 should an additional well be drilled and completed.
5. Deposit of US $250,000 on signing definitive agreement.

The terms described herein are binding under the Interim Agreement but subject to the negotiation and execution of a definitive agreement. In addition to the definitive agreement, the transaction is conditional upon all necessary New Zealand Government approvals, regulatory and exchange approval as well as approval of the East West shareholders.

In connection with the required shareholder approvals, an annual and special meeting of the shareholders of the Company has been scheduled for December 15, 2023.

On Behalf of the Board

Nick DeMare,
Director & Interim CEO

1305 - 1090 West Georgia Street, Vancouver, BC, Canada, V6E 3V7
Tel: 604.685.9316 | Fax: 604.683.1585

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/186032

FAQ

What is the company name involved in the sale of oil and gas interests in New Zealand?

The company is East West Petroleum Corp.

What is the purchase price for the oil and gas interests in New Zealand?

The purchase price is US $1,000,000.

When is the effective date of sale?

The effective date of sale is July 31, 2023.

What are the reclamation obligations assumed by the purchaser?

The purchaser will assume reclamation obligations estimated to be US $633,820.

Is there any contingent consideration in the agreement?

Yes, there is contingent consideration of US $350,000 if an additional well is drilled and completed.

How much deposit is required upon signing the definitive agreement?

A deposit of US $250,000 is required upon signing the definitive agreement.

What are the conditions for the transaction?

The transaction is subject to negotiation, execution of a definitive agreement, necessary government approvals, regulatory and exchange approval, and approval of East West shareholders.