Bridge Resources to Acquire, Develop Dudgeon Field
Bridge Resources has entered into an arm's length Memorandum of Understanding dated October 30, 2006 with Century Exploration (UK) Limited and Warwick Energy Limited, to acquire a 100% interest in Blocks 48/21a and 48/21b in the Southern Gas area of the UK North Sea and a 3.0625% carried interest in Block 48/22b North for a sum of US$3,000,000 cash and 4,000,000 Common Shares of the Corporation, and the grant of an 8% net royalty interest in the Gas Field Asset.
The Gas Field Asset comprises the Dudgeon Field discovered by Placid Oil in 1967. The discovery well 48/21-1 encountered 19m (62 feet) of pay in the Rotliegendes Leman Sand at 2,250m (7,500 feet) that flowed at 20.9 million cubic feet gas with 628 barrels condensate per day. The P50 reserves estimated by a well-known independent UK-based engineering and consultancy group in March 2006, classified as contingent resources, are 36.2 billion cubic feet of gas and 720,000 barrels condensate. These reserve estimates are consistent with earlier reservoir modeling estimates of 51.8 billion cubic feet of gas by a separate independent engineering group in its report dated March 2004. The reserves data were prepared in accordance with SPE standards but without reference to National Instrument 51-101.
Dudgeon Field has been inactive since discovery but the increase in oil and gas prices and the maturity of infrastructure in this area of the North Sea now make Dudgeon Field attractive for economic development. Bridge plans to drill the first production well in the first quarter of 2007 with an estimated drilling cost of US$12,000,000.
The Proposed Acquisition is subject to a number of conditions, including contractual due diligence, regulatory acceptance, and the completion of the definitive documentation. The Proposed Acquisition is expected to be completed in November 2006.
"This acquisition adds an attractive new core asset to our portfolio with proven undeveloped reserves" said President and Chief Executive Officer, Edward J. Davies. "It's an excellent fit with our growth strategy, since it builds on our existing license base in the UK North Sea Gas Area. Bridge holds a 100% interest in analogous exploratory prospects in three blocks contiguous with Block 48/21 that will be commercially upgraded through development of Dudgeon."
After giving effect to the Asset acquisition, the Corporation will have 40,616,682 Common Shares issued and outstanding.
Bridge is active in the exploration for hydrocarbons in the Southern Gas Area of the UK North Sea where it holds 100% interest in four offshore exploration blocks located in water depths of 15 to 50m. In aggregate, these exploration blocks cover 900 square kilometers and Bridge is currently reprocessing existing 3D seismic surveys to finalize drilling locations.
- Bridge Resources Acquires Interest in UK North Sea Blocks (Dec 19)
- EnCore Snags Operatorship and Interest in UKCS Block (Jan 15)
- EnCore: Drilling Begins at Cirrus (May 29)
Company: Bridge Resources Corp. more info
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