Westbridge Energy Corporation has executed a binding agreement whereby the Company will enter into a US$1.0 million lease bank facility alongside Black Pearl Holdings, LLC with a private Japanese company. Upon closing, the Principal will fund the acquisition of leases covering seismically defined drillable conventional 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 year.