VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/08/13 -- East West Petroleum Corp. (TSX VENTURE: EW) (the "Company" or "East West") is pleased to announce that East West and its partner Naftna Industrija Srbije ("NIS") have received approval from the Romanian National Agency for Mineral Resources ("NAMR") to proceed with the proposed Phase 1 work program for the EX-2 Tria Concession, Romania, which will take place over 2013 and 2014.
The 2013 Phase 1 work program will consist of environmental baseline and environmental impact studies, 2D and 3D seismic acquisition and processing, geological and geophysical (G&G) studies, plus the drilling of at least one exploration well. Further G&G studies and a minimum of two additional wells will be drilled in 2014. Seismic tendering is currently underway.
East West will be fully carried through the Phase 1 work program which has an estimated budget of approximately US$11.7 mm. NIS will be the operator with an 85% participation interest, with East West holding the remaining 15%.
Multiple geological plays will be targeted in this proven hydrocarbon sector of the Pannonian Basin. Nine prospects and leads have been identified which will be high graded for additional G&G work and drilling. The planned seismic program should identify additional leads and move existing leads into the prospect category.
Greg Renwick, President & CEO commented, "We are looking forward to commencing the Phase 1 work program on the Tria Concession and working with NIS, which is one of the leading operators and producers in the Pannonian Basin. This portion of the Pannonian Basin has proven to be an established hydrocarbon province, with approximately nine fields with historical or current production offsetting the Tria Concession."
East West adopts fixed stock option plan
East West also announces that it has now adopted a new 15% fixed stock option plan (the "Stock Option Plan") to provide incentive to the Company's directors, officers, employees and consultants. The maximum number of shares which may be issued under the Stock Option Plan, together with the number of shares issuable under outstanding options granted otherwise than under the Stock Option Plan, shall not exceed 15% of the issued and outstanding shares of the Company at the date of adoption.
The adoption of the Stock Option Plan is subject to shareholder approval which will be sought at the Company's next Annual General Meeting (the "AGM") and is also subject to approval by the TSX Venture Exchange (the "Exchange"). Pursuant to Exchange policies, the Stock Option Plan will require approval at the AGM in order to properly fix the amount of options available under the Stock Option Plan. Additionally, no new options granted under the amended 15% Stock Option Plan may be exercised prior to obtaining shareholder approval at the AGM.
As of today, 12,408,697 stock options are currently reserved for issuance under the Stock Option Plan, which is equal to 15% of the issued and outstanding shares of the Company at this date.
In addition, subject to disinterested shareholder approval, the board of directors has agreed to amend the terms of 1,400,000 stock options previously granted to Mr. David Sidoo, the Executive Chairman of the Company, by reducing the exercise price from $1.16 and $0.83 per share to $0.40 per share. All other terms of the options remain the same.
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