VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 17, 2014) - Westbridge Energy Corporation (TSX VENTURE:WEB)(PINKSHEETS:WEGYF)(FRANKFURT:PUQ1) ("Westbridge" or the "Company") is pleased to announce it has exercised its option to merge with Black Pearl Holdings, LLC ("Black Pearl" or "BPH") as announced on November 27, 2013 and has also received Exchange approval to proceed with its previously announced 4:1 share consolidation.
Merger of Westbridge and Black Pearl
The merger between Westbridge and Black Pearl will be completed by Westbridge issuing to Black Pearl shareholders a total of 19,869,813 common shares of Westbridge. The shares will be issued post-consolidation of the share capital of Westbridge.
Upon closing of the proposed merger, the combined entity will hold:
- 56.45% operating interest in the Bivens Field, Beauregard Parish, Louisiana;
- 70% operating interest after back-in rights in the Wharton County Field, Wharton County, Texas;
- 100% interest in the 85 square mile Lavaca County 3D survey;
- rights to utilize 100,000 linear miles of 2D seismic data licensed from ExxonMobil; and
- a 75% and 80% operating interest in 2 licenses covering 22,484 square kilometers of offshore concessions in the Walvis Basin, Namibia.
This transaction positions the combined entity as an emerging oil and gas company with a pipeline of production and reserve generating projects and considerable exploration upside derived from over 500 leads and prospects generated from a dataset spanning 100,000 linear miles across the Gulf Coast of the US; and highly prospective acreage in Namibia.
The form of the transaction will be determined after further consultation with legal and tax advisers. The closing of the proposed transaction will be subject to, among other matters, the completion of an audit of the financial statements of BPH, the execution of a definitive agreement, the approval of the TSX-V and if required the shareholders of both companies. It is anticipated the transaction will close on or before June 13, 2014.
It is anticipated that the work crew and STIMGun will arrive at the Biven Fields to work over the Olympia Minerals #2 ("OM#2") well this coming week. Weather conditions have delayed the previously anticipated arrival.
Westbridge and Black Pearl have also received notice the work crew and fracture equipment for the 11,300' sand of the Olympia Minerals #1 ("OM#1") well at Bivens Field will be arriving in the coming week. The well is currently being prepared for fracking.
Production results will be available several days after the reperforating of OM#2 well and fracking of the OM#1 well have been completed.
Westbridge Energy Corporation announces that it has received TSX Venture Exchange approval for its 4:1 share consolidation announced November 5, 2013. The Company's shares will trade on a post-consolidated basis effective Monday, April 21, 2014. There is no change in the trading symbol for Westbridge. The new CUSIP number will be 957155203.
No fractional shares will be issued under the share consolidation. Instead, all fractional shares resulting from the consolidation of less than one-half will be rounded down to the nearest whole number, and of one-half or greater will be rounded up to the nearest whole number.
Letters of transmittal describing the process by which shareholders may obtain new certificates representing their consolidated common shares will be mailed shortly to registered shareholders. Shareholders holding their shares through a broker or other intermediary and consequently not having shares registered in their name will not be required to complete a letter of transmittal.
Following consolidation and subject to rounding, the Company will have 30,993,022 (pre BPH merger) issued and outstanding common shares. All outstanding incentive stock options and share purchase warrants will be adjusted accordingly to reflect the share consolidation.
Mr. Tosan Omatsola, CEO and President of WEB, comments: "The combination of Westbridge and Black Pearl moves forward our collective interests in terms of building a leading exploration and production company. Upon consummation of this transaction, our management team and board believe the combined entity will be one of the most unique junior oil and gas companies in the sector and provide investors balanced exposure to the growth of production, reserves and significant discovery potential."
Michael Looney, CEO and President of BPH, comments: "The merger of Westbridge and Black Pearl stems from a strong working partnership and the desire to align our interests with the objective of creating a leading exploration and production company. We look forward to consummating this merger and continuing to secure the capital required to exploit the full potential of the over 500 leads and prospects defined from the ExxonMobil dataset."
About Black Pearl Holdings, LLC
Black Pearl Holdings, LLC is a Houston, Texas-based exploration and production company with extensive experience in the generation and development of oil & gas properties throughout the continental United States. BPH's management team is comprised of five highly seasoned industry professionals who possess over 150 years of combined oil and gas experience.
For additional information readers are invited to review additional corporate and property information available at Westbridge's website at www.westbridgeweb.com.
On behalf of Westbridge Energy Corporation,
Tosan Omatsola, President and Chief Executive Officer
Darren Collins, Vice President, Business Development
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 and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company's future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning equipment and crew availability, and joint venture partner financial capability. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labor, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by the Company with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.