East West Petroleum Provides Update on Sale of New Zealand Oil and Gas Properties

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East West Petroleum Corp. Provides Update on Sale of New Zealand Oil and Gas Properties, Potential Cash Distribution to Shareholders

Vancouver, British Columbia--(Newsfile Corp. - March 25, 2024) - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") is pleased to provide this update in regard to the status of the sale of the New Zealand oil and gas properties.

Pursuant to the terms of the purchase and sale agreement, the purchaser is required to obtain necessary regulatory and governmental approvals as a condition to closing. The Company has been advised by the purchaser that all required filings for approvals have been made and such approvals are pending. It is expected that approvals will be obtained on or before the May 31^st long stop date contemplated by the purchase and sale agreement. Thereafter, and in the event the approvals are not obtained, the Company has the ability, in its discretion, to terminate the agreement.

In addition the purchaser has indicated they do not expect approvals will be received by March 31^st 2024, and as a result the purchaser is contractually committed to reimburse the Company for additional costs it will incur of up to $50,000.

Following the closing of the purchase and sale, it is anticipated that the Company will make a cash distribution to the shareholders. The precise nature and quantum of any distribution will be subject to the completion of the purchase and sale on the terms disclosed, as well as tax and legal advice to structure any distribution in the most tax advantageous way. There can be no assurance that the purchase and sale transaction will be completed and there can be no assurance that the Company will make any distribution to its shareholders and reserves the right to alter, modify or cancel any proposed distribution.

On Behalf of the Board

"Nick DeMare"

Nick DeMare,
Director & Interim CEO
604-685-9316

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/202872

FAQ

When is the expected long stop date for obtaining necessary approvals for the sale of New Zealand oil and gas properties by East West Petroleum Corp. (EWPMF)?

The expected long stop date for obtaining necessary approvals for the sale of New Zealand oil and gas properties by East West Petroleum Corp. (EWPMF) is May 31st, 2024.

What happens if the approvals for the sale of New Zealand oil and gas properties are not obtained by the long stop date?

In the event that the approvals for the sale of New Zealand oil and gas properties are not obtained by the long stop date, East West Petroleum Corp. (EWPMF) has the ability to terminate the agreement.

What commitment has the purchaser made regarding additional costs if approvals are not received by March 31st, 2024, for the sale of New Zealand oil and gas properties by East West Petroleum Corp. (EWPMF)?

The purchaser has contractually committed to reimburse East West Petroleum Corp. (EWPMF) for additional costs of up to $50,000 if approvals are not received by March 31st, 2024, for the sale of New Zealand oil and gas properties.

Will East West Petroleum Corp. (EWPMF) make a cash distribution to its shareholders after the closing of the purchase and sale?

East West Petroleum Corp. (EWPMF) anticipates making a cash distribution to its shareholders following the closing of the purchase and sale, subject to completion of the transaction and tax and legal advice.

Is there a guarantee that the purchase and sale transaction will be completed by East West Petroleum Corp. (EWPMF)?

There is no assurance that the purchase and sale transaction will be completed by East West Petroleum Corp. (EWPMF), and the company reserves the right to alter, modify, or cancel any proposed distribution.