VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/06/13 -- Westbridge Energy Corporation (TSX VENTURE: WEB)(FRANKFURT: PUQ1) ("Westbridge") is pleased to announce having entered into a letter of intent (the "LOI") with Ropat Petroleum Investments (PTY) Ltd. ("Ropat") to acquire a majority interest in the oil and gas exploration blocks 1911A relinquished, 1912B, 1910A relinquished and 2011A relinquished (the "Licenses") offshore Namibia (the "Transaction"), Westbridge and Ropat have signed a Petroleum Agreement dated February 1, 2013 with the Mining, Minerals and Energy Department of the Republic of Namibia in relation to the Licenses. Ropat is a private oil and gas company incorporated in Namibia.
Upon completion of the Transaction, Westbridge will be the Operator of the Licenses with a 75% interest. Ropat will have a 15% interest and the remaining 10% interest will be held by NAMCOR, the Namibian state oil company. NAMCOR's interest will be a carried interest with certain back-in rights for the Licenses.
Westbridge and Ropat have agreed to proceed diligently and in good faith to negotiate and enter into a definitive agreement in relation to the Transaction on or before February 28, 2013.
Consideration for the Transaction will comprise 5 million common shares in the capital of Westbridge (the "Westbridge Shares") to the shareholders of Ropat and a cash payment of US$500,000 on the closing date of the Transaction. The Westbridge Shares will be subject to a statutory four-month hold period from the date of issue and such other regulatory hold period imposed by the TSX Venture Exchange (the "TSX-V"). In addition the Westbridge Shares will be subject to a contractual hold period (the "Lock-up Arrangements") from the date of issue providing for release on the following basis: 1/3rd will be released 6 months from the date of issue, a further 1/3rd will be released 12 month from the date of issue and the final 1/3rd will be released 18 months from the date of issue.
In addition, Westbridge will make a cash payment to Ropat of US$1 million upon the satisfactory completion of the following conditions to be set out in a definitive agreement in relation to the Transaction:
1. receipt by Westbridge of an independent technical report from a reputable firm indicating the Licenses contain a risked, recoverable, P50 resource estimate of 1,000MMboe or greater; and2. Westbridge having a net cash balance of more than US$15million.
The Licenses are situated in the Walvis Basin in northern Namibia, close to the Namibia - Angola border. A map of the new acreage position can be viewed at www.westbridgeweb.com. The Licenses are contiguous to Block 1811B in which Westbridge currently has an 80% working interest and is Operator. The acquisition of the Licenses increases Westbridge's existing areal coverage in offshore Namibia from 1.4 million acres (5,854 square kilometers) to a total of approximately 5.3 million acres (21,448 square Kilometers). The Licenses are in the highly prospective Walvis Basin where operators HRT Participacoes em Petroleo S.A. (HRT) and Repsol S. A. (Repsol) have stated their intention to drill exploration wells in March, 2013 and March, 2014 respectively.
The Licenses cover water depths ranging from the shoreline to 1,800m and are covered by over 10,000 line kilometers of good quality 2D seismic data. Westbridge's initial technical analysis indicates the Licenses show similar geologic play concepts and trends to those observed in other prolific petroleum basins in Brazil and the deepwaters of Ghana, Angola, Liberia and Sierra Leone.
Cody Lee, CEO of Westbridge, commented, "These new Licenses represent a highly complementary geologic extension of Westbridge's existing asset base and hold world-class discovery potential. The acquisition of these highly prospective Licenses validates our selection of the contiguous position of Block 1811B where we have an 80% working interest. Furthermore, this Transaction demonstrates Westbridge's ability to leverage our strong local partnerships to acquire world-class assets."
Westbridge reserves the right to pay a finders fee in cash and/or securities of Westbridge to arm's length finders in connection with the Transaction. The Transaction is an arm's length transaction and is not expected to result in a change of control of Westbridge.
Westbridge Energy Corporation is an international oil and gas exploration and development company. Westbridge continuously reviews accretive new international oil and gas opportunities to grow its portfolio and create shareholder value.
For additional information readers are invited to review additional corporate and property information available on SEDAR at www.sedar.com.
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.
Neither the 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.
Westbridge Energy Corporation
(505) 850 2930
Derek Gradwell, SVP, Natural Resources