VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 18, 2014) - Westbridge Energy Corporation (TSX VENTURE:WEB)(PINKSHEETS:WEGYF)(FRANKFURT:PUQ1) ("Westbridge" or the "Company") alongside partner Black Pearl Holdings, LLC ("Black Pearl") (the "Partners") are pleased to announce that they have completed the technical designs for the initial work programs at Bivens Field, Beauregard Parish, Louisiana ("Bivens Field") and Wharton County Field, Wharton County, Texas ("Wharton Field"). The initial work programs are focused on reworking the two producing wells at the Bivens Field and drilling a new production well at the Wharton Field. The Partners are now in the process of securing rigs and work crews to complete these operations.
Bivens Field, Louisiana: Update
The work programs at Bivens Field will focus on the Middle Wilcox 11,300' Sand in the Olympia Minerals #1 ("OM#1") well and the Middle Wilcox 10,600' Sand in the Olympia Minerals #2 ("OM#2") well. These two Middle Wilcox sands are currently producing approximately 40 BOEPD of combined production. Based on the technical analysis performed by the Partners, management believes these initial programs are anticipated to generate sufficient cash flow to sustain the working capital requirements of the Partners going forward.
The Partners plan to hydraulically fracture the 11,300' Sand in OM#1 well as originally proposed. A final fracture design has been chosen and approved by the Partners and a fracture crew is being mobilized to begin the work. The fracture design is forecasted to come in on budget. In addition to the fracture plan at the OM#1 well, the Partners have designed a plan to re-perforate the Middle Wilcox 10,600' Sand in the OM#2 well. The Partners will use Baker Hughes' STIMGun Propellant Assisted Perforating System to conduct this operation. The STIMGun System was chosen due to its unique ability to dynamically clean and stimulate the near-wellbore area and minimize expected water production. Using the STIMGun System will significantly reduce the originally planned cost of re-working the OM#2 well while producing the same expected production increase.
The Partners expect to begin operations on the OM#1 well and OM#2 well in the coming weeks and have selected Baker Hughes to complete the workover of both the OM#1 and OM#2 wells. Baker Hughes is a top-tier oilfield service company with a very long track record and extensive experience in completing, reworking and fracking Wilcox sands in Louisiana and the Texas Gulf Coast.
Wharton Field, Texas: Update
The Partners have completed preparations for the drilling of the Wharton County Field #3 ("WC#3") well at the Wharton County Field. The WC#3 well will be drilled to the productive Lower Frio Sand 40' to 50' up dip from the Wharton County Field #1 ("WC#1") well. The WC#3 well location will be 500' northeast of the WC#1 within the same seismic anomaly. A final well design has been chosen and approved by the Partners and negotiations have begun to secure a rig to drill the well. The Partners expect the entire 50' sand could be saturated with light oil and capable of achieving high flow rates. This expectation is based on the initial test rate of approximately 236 BOPD from the WC#1 well on an 8/64ths choke. The intention is to increase the choke to 10/64ths to further enhance the potential flow rate of the WC#3 well. The Partners intend to begin field operations on the WC#3 well as soon as a rig can be secured.
Wharton Field, Texas: New Partners
The Partners are pleased to announce they have entered into a binding participation agreement (the "Agreement") whereby Westbridge and Black Pearl will farmdown a 10% working interest in the Wharton County Field to Ferguson Family Properties LP ("FFP"), a successful oil and gas development partnership in Texas. Upon closing of the transaction, Westbridge will control a 45% working interest and Black Pearl will control a 45% operating interest in the Wharton County Field.
Pursuant to the terms of the Agreement with FFP, Westbridge and Black Pearl will receive 25% of the FFP interest, as a back-in right after pay-out from the WC#3 well. After pay-out, Westbridge will hold a 46.25% working interest and Black Pearl a 46.25% operating interest in the Wharton County Field. FFP will fund their proportionate share of all lease and drilling costs going forward as well as pay an entry fee of US$8,333.
This transaction is consistent with the Partner's strategy to source parties interested in entering into off balance sheet financial arrangements. The Partners are in advanced stage discussions to secure other farm in parties to participate in the development of the Wharton County Field.
Tosan Omatsola, CEO of Westbridge and Mike Looney, CEO of Black Pearl, jointly comment: "Westbridge and Black Pearl are pleased with the pace with which our milestones are being achieved. The goal of developing our joint assets is being diligently pursued with the support of our joint operating committee, the advisory board and our talented technical consultants. We look forward to completing these initial work programs with the objective of increasing the production rate of our companies".
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|On behalf of Westbridge Energy Corporation,
|President and Chief Executive Officer
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