Westbridge Welcomes New Partner at Wharton and Provides Financial Update
Mar 31, 2014
Vancouver, British Columbia, March 31, 2014 -- Westbridge Energy Corporation (TSXV: WEB) (Pinksheets: WEGYF) (Frankfurt: PUQ1) ("Westbridge" or the "Company") is pleased to announce it has entered into a binding agreement alongside Black Pearl Holdings, LLC ("Black Pearl") whereby Westbridge and Black Pearl will convey a 30% working interest in the Wharton County Field to Rockefeller Hughes Corporation ("RH"). In combination with the 10% conveyance announced on March 18, 2014, Westbridge now controls a 30% working interest and Black Pearl controls a 30% operating interest in the Wharton County Field.
Pursuant to the terms of the transaction, Westbridge and Black Pearl will each receive half of a 7.5% back-in right after the payout from the Wharton County #3 well. After taking into account the back-in rights of the previously announced and current transaction, Westbridge will hold a 35% working interest and Black Pearl a 35% operating interest in the Wharton County Field. RH will fund their proportionate share of all lease and drilling costs going forward as well as pay an entry fee of US$25,000. These funds will be applied to the cost of the Wharton County #3 well.
As a result of these transactions, Westbridge will now fund 60% of the upcoming drilling costs associated with the Wharton County #3 well, as opposed to the 75% initially contemplated. The Company is awaiting the resolution of a probate related matter before drilling the Wharton County #3 well. The Company and its partners anticipate this final portion of the lease package will be secured in the near term.
The conveyance of interest in the Wharton County Field is consistent with the Company's strategy to source parties interested in entering into off balance sheet financial arrangements with the objective of minimizing dilution to public company shareholders. Based on the completion of this arrangement, the Company will not be proceeding with the second tranche of its previously announced non-brokered private placement of units.
Mr. Tosan Omatsola, CEO of Westbridge, comments: "Westbridge and Black Pearl continue to execute on our stated strategy of sourcing parties to validate and partake in the development of our projects. By reducing our need to issue shares at the current valuation, our management team believes we have further enhanced our value proposition to institutional and retail investors. We anticipate launching the drilling of the Wharton County #3 well in the near term and will update the market accordingly."
For additional information readers are invited to review additional corporate and property information available at Westbridge's website at:
On behalf of Westbridge Energy Corporation,
President and Chief Executive Officer
+1 604 638 9378
+1 818 970 6940
Neither 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.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act, the Alberta Securities Act and the Ontario Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Westbridge's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Westbridge's future plans, objectives or goals, including words to the effect that Westbridge or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's oil and gas properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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