Bridge Resources Closes Southern Gas Acquisition
Bridge Resources Corp. has acquired a 100% interest in blocks 48/21a and 48/21b in the Southern Gas area of the UK North Sea (the "Gas Field Asset") and a 3.0625% carried interest in Block 48/22b North (collectively the "Assets") from Century Exploration (UK) Limited and Warwick Energy Limited. The transaction comprised US$3 million in cash, 4 million common shares of Bridge, and the granting of an 8% net royalty interest in the Gas Field Asset. The shares will be subject to a four-month hold period.
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 mid 2007 with an estimated drilling cost of US$12 million.
In regard to the 3.0625% carried interest in Block 48/22b North that was acquired, Bridge has been informed that Perenco, the operator of Block 48/22b is expecting to spud its South Waveney Cirrus well in May 2007.
Bridge Resources Corp. is active in the exploration for hydrocarbons in the Southern Gas Area of the UK North Sea where it holds 100% interest in eleven offshore exploration blocks located in water depths of 15 to 50m. In aggregate, these exploration blocks cover 422,000 square kilometers and Bridge is currently reprocessing existing 3D seismic surveys to finalize drilling locations.
Operates 1 Offshore Rigs
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