Silverstone Energy and Bridge Energy have completed a combination agreement whereby the two companies become subsidiaries of the holding company Bridge Energy ASA. Bridge Energy ASA recently completed a private share issue raising NOK 324 million ($55 million) in new equity. The company has applied for a listing on the Oslo Stock Exchange and it is preparing for an initial public offering in early May 2010.
The combined company has been active in the North Sea since 2005 with a track record of 32 license awards, 11 farm-in acquisitions and 12 wells resulting in 7 discoveries. The first discovery to be developed was the Victoria gas field in the UK Southern North Sea which started production in 2008 and is currently producing 1,500 boe per day. The company is a qualified operator on the continental shelf in both UK and Norway.
Bridge Energy and Silverstone are complementary in competence and asset portfolio. While Bridge Energy has a distinct exploration focus, Silverstone has proven capability as operator of both development and production projects. The combination of producing assets and undeveloped discoveries in the UK with attractive exploration opportunities in Norway has created positive interest in the investment community. The public offering in connection with the listing on the Oslo Stock Exchange will provide another opportunity for investors, comments Einar H. Bandlien, CEO of Bridge Energy ASA.
Goal of 10.,000 boe/d
Going forward the combined company has a strong platform for growth through near term gas development projects in the UK and active exploration in Norway. A Field Development Plan for the Vulcan East gas field is under preparation with expected first gas late in 2011. A scheduled exploration program mainly in Norway includes 7 wells during 2010-2011. From the present production level of 1,500 boe per day the company has development plans which will grow production to more than 10,000 boe per day, explains Mr Bandlien.
In the combined entity Einar H. Bandlien continues as CEO supported by Eystein Westgaard as CFO and Tom Reynolds, formerly Managing Director of Silverstone, as Commercial Director. The UK operations will be run by Jim Brunton - Silverstone's former Finance Director now Managing Director. Alfred Kjemperud, Bridge Energy AS former COO, will become Managing Director of the Norwegian operation.
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