IRVING, TX--(Marketwired - Jul 14, 2016) - International Western Petroleum, Inc. (OTCQB: INWP) announced today that it has executed a definitive Purchase and Sale Agreement (the "Agreement") to purchase all assets of a privately held Houston-based E&P company in the Texas Gulf Coast region (the "Seller").

The acquisition, which consists of three phases, includes current producing assets of the Seller and acquisition targets of the Seller, which taken together, constitutes current production of approximately $2.0 million per month EBITDA (based on June production and pricing) and over $1 billion of 3-P (Proven, Probable and Potential) Reserves as opined by DeGolyer and McNaughton and Ralph E Davis and Associates.

The Agreement provides for a total purchase price of $2.0 million to be paid by August 30, 2016, the scheduled date of closing. Operations to increase cash flow will be undertaken upon closing. The Agreement also provides for INWP to issue five million shares of common stock and one million warrants to the Seller.

The first phase of the acquisition assumes the current production of the Seller, which is 5,000 mcfpd and 42 bopd with net income of approximately $300,000 per month based on June production and pricing.

Out of the $2.0 million cash payment from INWP at closing, $1.5 million will be used in the next 30 days for a development program designed to raise the Seller's current production by an additional 2,000 mcfpd and 80 bopd, for a total net income projected at $535,000 per month as cash flow into INWP.

It is noted that the Seller owns 18,100 acres of oil and gas leases with 36 active wells and proven and probable reserves of approximately $137 million undiscounted and $76 million PV10% at current pricing.

INWP will also assume the Seller's position in its acquisition targets of some 55,000 acres and 258 wells (59 active) with current production of 400 bopd and 8700 mcfpd gas. The second phase of acquisitions, which is scheduled for September 30, 2016, will provide a total of $17.2 million of which $8.5 million will be spent in acquisition cost and $8.7 million will be spent in development cost. The last phase of acquisitions, which is scheduled for November 30, 2016, will provide a total $26 million of which $20 million will be spent in acquisition cost and $6 million will be spent in development cost.

All leases are along the Texas Gulf Coast and are conventional asset plays.

Combined assets, after the all-phase acquisition from the Seller, including its acquisition targets, will be 73,100 acres with daily production of 15,700 mcfpd and 122 bopd current production, or $2.0 million EBITDA per month at current production.

Proven reserves of the combined entity upon acquisition is estimated by reputable third party engineering firms DeGolyer McNaughton, Ralph E Davis & Associates, American Energy Advisors and Netherland Sewell & Associates at 5.615 million bo proved and 111.8 BCF gas or $129 million PV10% and $201 million undiscounted. Total 3-P Reserves per the same recognized third party experts is estimated at just over $1 billion at current prices.

INWP's development programs seek to raise the current income to $5 million per month net income based on proved, probable and possible reserve operations. Upon the closing of the transaction on the first phase of the acquisition with the $2.0 million capital injection, INWP shall assume the Houston-based office and a selected staff from the Seller to continue operations on the acquired assets and production income.

Dr. Benjamin Tran, Chairman of International Western Petroleum stated, "Based upon our due diligence reviews of the transaction to date, we believe that this opportunity is highly attractive and we are keen to work with our large network of private investors and family offices to conclude the transaction in a timely manner while preparing to use all commercially reasonable efforts to work closely with our advisors and consultants to complete the transaction."

Ross Ramsey, CEO of International Western Petroleum said, "This transaction is expected to bring significant revenues and assets to INWP, making it a serious oil and gas player along the Texas Gulf Coast. INWP hopes to establish its presence in the region, continuing to utilize a dynamic workforce from a very talented executive team in Houston to build INWP into a world class company via M&A growth. Our development plan is to accelerate production during this time of development costs by focusing our concentration on the viability of proved reserves categories."

About International Western Petroleum, Inc.:
International Western Petroleum is a Texas-based E&P company that focuses on the acquisition, development, and exploration of crude oil and natural gas properties in Texas. The company is actively looking to acquire oil and gas properties and apply the latest technologies and production know-how to increase acreage, productions and reserves with a focus in the Central West Texas region. For more information, please visit its corporate website:

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at

Contact Information:

Investor Relations Department
International Western Petroleum, Inc.
5525 N. MacArthur Blvd, Suite 280
Irving, TX 75038
(855) 809-6900