Westbridge Energy Corporation

Westbridge Energy Corporation

January 09, 2015 07:58 ET

Westbridge Signs Binding Agreement for US$1.0 Million Lease Bank Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 9, 2015) - Westbridge Energy Corporation (TSX VENTURE:WEB)(FRANKFURT:PUQ1)(OTC PINK:WEGYF) ("Westbridge" or the "Company") reports it has executed a binding agreement whereby the Company will enter into a US$1.0 million (the "Principal") lease bank facility (the "Facility") alongside Black Pearl Holdings, LLC ("Black Pearl") with a private Japanese company ("Private Co"). Upon closing, the Principal will fund the acquisition of leases covering seismically defined drillable conventional prospects (the "Prospects").

Pursuant to the terms of the Facility, Private Co will commit up to US$1.0 million for the acquisition of predetermined lease packages in exchange for an interest accrual of 5% per annum and participation election to acquire a 5% working interest upon the drilling of an initial well at each of the Prospects. The participation election can be exercised anytime within 30-days of the completion of an initial well, at each of the Prospects, in exchange for funding a proportionate share of the historic cost to lease, drill and complete the initial well. The lease bank will have a term of one (1) year.

Mr. Darren Collins, President and CEO of Westbridge, comments: "This lease bank facility represents an ideal opportunity for Westbridge to accrue best value to our acreage position in 2015, complements our rights to participate in an extensive seismic database, and best positions Westbridge for future strategic and extractive relationships. With the recent decline in oil prices globally, we believe our conventional oil plays will garner interest of both strategic and financial market participants."

Structure and Repayment

The Principal allocated to the acquisition of leases shall be secured by the leases. However, in any and all cases, the Facility shall be non-recourse to Westbridge or any affiliated entities of Westbridge. The leases shall be initially acquired in the name of third-party entity and assignment of the leases will take place after notice from Private Co to the third-party of repayment. In the event of non-payment by the end of the term of the Facility, Private Co will receive full assignment of Westbridge and Black Pearl's combined interest in the Prospects.

Repayment of the Facility is contemplated to be satisfied as follows:

  1. Prospect Sale: Sale of one or all of the Prospects for cash;

  2. Working Interest Sale: Sale of working interest in one or all of the Prospects for cash; or

  3. Farm-down: Sale of working interest for commitments to fund exploration and development activities as well as back costs for leasing expenses incurred.

Closing of the transaction with Private Co is conditional on the satisfaction or waiver of customary closing conditions. The transaction is scheduled to close on February 15th, 2015 or such other date of the parties agree.

For additional information visit www.westbridgeweb.com.

On behalf of Westbridge Energy Corporation,

Darren Collins, President and CEO

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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