East West Petroleum Corp. provided the following operational update on its operations in the Taranaki Basin of New Zealand and in Romania. The Company's joint venture partner, TAG Oil Ltd. is the operator of all licenses in New Zealand, while in Romania the Company's partner Naftna Industrija Srbije is the operator of all concessions. The Company reported that to Feb. 15, 2014 the gross production from the Cheal E-site totaled over 50,000 boe. The Cheal-E1 well is currently producing at a rate of over 500 boepd (87% oil) through a 17/64" choke. The Cheal-E4 has been on test production since January 1, 2014, with an average production rate of over 280 boepd (83% oil). The Cheal-E4 well will soon be placed on permanent production following a temporary shut-in period to allow for temperature and pressure analysis while other E-site wells are flow tested, starting with Cheal-E5. The initial production testing data is being used to determine the long-term production scheme for the site. Under the joint operating agreement with TAG, East West paid 100% of the first CAD 5 million in drilling costs on the Cheal E site and is entitled to receive 100% of the first CAD 5 million in revenue, while paying 100% of the costs to produce that revenue, after which all revenue and costs will be shared 70:30 between TAG and EW. To date, over 23,000 barrels of oil have been sold at an average price of over USD 109/b from which the Company estimates it will receive cash netbacks of over USD 80 per barrel. East West expects to have recovered the $5 million in revenue by the end of first quarter of 2014.

The Company also announced that the minimum committed 2014 capital expenditures in New Zealand for East West are expected to total CAD 10.4 million, which will include the drilling of three wells from the Cheal G-site, one well at Southern Cross, and at least one well from the Cheal E-site. In addition, seismic acquisition and reprocessing is planned for the Taranaki and East Coast permits in 2014. Further wells to the 2014 drilling program are expected to be added following the completion and interpretation of the results of the current drilling program. Capex for the 2014 committed work program and any additional wells will be financed from the Company's existing cash balance and from production from Taranaki Basin permits.