Westbridge Energy Corporation

Westbridge Energy Corporation

September 22, 2014 07:00 ET

Westbridge Produces Oil at Wharton County Field and Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 22, 2014) - Westbridge Energy Corporation (TSX VENTURE:WEB)(PINKSHEETS:WEGYF)(FRANKFURT:PUQ1) ("Westbridge" or the "Company") is pleased to provide the following update to investors as it relates to the Wharton County Field in Wharton County, Texas, the Bivens Field in Beauregard Parish, Louisiana, the planned merger with Black Pearl Holdings, LLC ("Black Pearl") and its strategic direction going forward.

Wharton County Field

The Wharton County #3 ("WC#3") well has been successfully drilled to a total depth of 10,000 feet (3,048 meters) and encountered 47 feet (14.3 meters) of gross objective interval with 25 to 30 feet (7.6 to 9.1 meters) of net pay in the Lower Frio section of the field, as announced on July 16, 2014.

Consistent with pre-drill expectations, the WC#3 well encountered the Lower Frio section stratigraphically trapped against the Boling Salt Dome and displayed excellent reservoir properties with average porosity of approximately 24% and average permeability of approximately 300 millidarcies. The reservoir was encountered 49 feet (14.9 meters) structurally updip from the Wharton County #1 well. Results from the logging and coring also confirmed the presence of 36 to 40 degree gravity oil. Based on these results, Westbridge and Black Pearl moved forward with completing the well by setting a 5.5 inch (12 centimeter) production casing and perforating a 25 foot (7.6 meter) interval. After initial testing, the decision was made to install a pumping unit in order to produce the well.

Upon installation of the pumping unit, the WC#3 well has been brought online and begun to produce at an initial rate ranging from 26 to 62 barrels of oil per day, as measured over a four day period from September 17, 2014 to September 20, 2014. During this production period, the oil cut was an average of 46%. It is anticipated the oil cut will improve as the well continues to be pumped and recent mechanical repairs to the pumping unit will result in continuous and uninterrupted production. Once the well has stabilized and the rate of the pumping unit has been increased to capacity, the Company will update the market with additional well information. All production facilities have been installed and oil is currently flowing to sales.

Westbridge currently has a 20% working interest in the WC#3 well and 27.5% working interest in the Wharton County Field. On a combined basis, Westbridge and Black Pearl hold a 35% interest in the well and 50% interest in the field. Westbridge will cost recover all lease and well costs from 80% of Black Pearl's net production revenue from the WC#3 well. The Wharton County Field has 5 to 6 follow up drilling locations.

Bivens Field

As an update to the work-over of the Olympia Minerals #1 ("OM#1") well and Olympia Minerals #2 ("OM#2") well, as press released on June 2, 2014, the wells are currently producing at a combined rate of 97 barrels of oil per day and 154 thousand cubic feet of gas per day over a gross 24-hour period, as measured on September 18, 2014. This translates into approximately 124 barrels of oil equivalent per day, in which Westbridge holds a 41% working interest in the OM#1 and OM#2 wells and 31% working interest in the Bivens Field. On a combined basis, Westbridge and Black Pearl hold a 56.5% interest in the field and 75% interest in the wells.

Since completing the work-over of the wells, a dual plunger system has been installed on the OM#1 well and Westbridge and Black Pearl continue to evaluate the installation of a system on the OM#2 well. The OM#2 well was recently reopened after being shut-in for pressure buildup and technical evaluation. Upon reopening the well, it produced 80 barrels of oil per day and 99 thousand cubic feet of gas per day. Westbridge and Black Pearl will continue to monitor the well and will take the appropriate action subject to well performance.

Black Pearl Merger

Westbridge and Black Pearl have made substantial progress in terms of completing the merger between the companies, including the formation of a legal and tax structure, negotiation of a definitive agreement and definition of the steps to closing. The companies continue to move forward with merger plans and are currently addressing an historic litigation issue at Black Pearl, unrelated to the joint venture with Westbridge, with the objective of reaching a satisfactory arrangement with the third-party in the near term. The companies remain committed to the completion of this transaction and will update the market in due course.

Strategic and Capital Update

In the first three quarters of 2014, Westbridge has delivered on its stated capital allocation commitment to investors and provided exposure to multiple oil and gas prospects at various stages of development. Maximizing available capital resources and managing issues associated with field operations, Westbridge is currently receiving a net production share of approximately 60 barrels of oil equivalent per day from its investments and continues to pursue opportunities to expand production at an attractive acquisition and development cost per barrel.

While current production is anticipated to sustain the Company, to fully exploit the potential of future drill prospects, the board and management team are evaluating strategic initiatives to secure exploration and development capital, be it direct financing, joint venture partnership, assets sale, or combination thereof. The Company has multiple ongoing discussions in this regard and believes its unique combination of assets, including the Bivens Field in Louisiana, Wharton County Field in Texas, Lavaca County Project in Texas, offshore blocks in Namibia and option to participate in nearly 500 prospects and leads generated from 2D data licensed though ExxonMobil, underpin the valuation of the Company and support the likelihood of a favorable long-term capital solution.

Management Commentary

Mr. Tosan Omatsola, CEO of Westbridge, comments: "Despite headwinds common in the oil and gas industry, Westbridge has delivered on its stated objective to shareholders. I attribute this success to the dedication and perseverance of our management team and board as well as prudent capital planning and a strong working relationship with our joint venture partner, Black Pearl. I would like to personally thank all the individuals involved in the completion of this initial capital plan, including our shareholders, for their patience and support, as we move forward with the objective of building Westbridge into a unique oil and gas company, with considerable exploration, development and production potential."

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,

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.

Forward-Looking Statements

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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