Bridge Resources Corp. Announces Two UK North Sea Acquisitions
12/19/2008 9:00:56 AM - Market Wire
CALGARY, ALBERTA, Dec 19, 2008 (MARKET WIRE via COMTEX News Network) --
Bridge Resources Corp. (TSX VENTURE: BUK)
is pleased to announce that Bridge North Sea Limited ("Bridge") has executed respective Memorandums of Understanding ("MOU") with Century Exploration (UK) Limited ("Century") wherein Bridge can acquire Century's remaining interest in the Southern North Sea Wherry development project and will acquire Century's 25% interest in three 25th Round blocks in Central North Sea Quad 9.
Bridge already holds a 50% interest in the Wherry portion of Block 48/24a in Licence P007 and thus wishes to acquire the 50% balance of the interest. Wherry comprises three structural closures, two of which have been penetrated and proven gas-bearing respectively by the 48/24a-1 well drilled in 1989 and the 48/21a-3 well drilled in 1991. The former well logged 60 feet of pay and tested 2.1 million cubic feet of gas per day. The latter encountered a much thicker 194 feet gas column feet that was not tested. Both wells were vertical and Bridge's initial strategic intent would be to drill a horizontal well across the crest of the structure with the thicker pay to achieve a high flow rate as an anchor for further development.
Bridge plans to seek Field Development Plan approval from the Secretary of State for the Department of Energy and Climate Change prior to any drilling. The Wherry assets do not contain any proved or probable reserves but DeGolyer MacNaughton in a report prepared in accordance with National Instrument 51-101 dated April 10, 2008, has independently assigned contingent resources, as follows.
Gross Contingent Hydrocarbon Resources Effective March 31, 2008
Low Best High
(MMcf) (MMcf) (MMcf)
20,394 43,328 118,602
There is no certainty that that it will be commercially viable to produce any portion of the resources. The contingent resources are not categorized as reserves as contingencies exist including Field Development Plan approval from the Secretary of State for the Department of Energy and Climate Change.
Under the terms of the MOU, Bridge will pay Century an initial option fee following execution of a Sales and Purchase Agreement and have the option to pay an additional success fee within 60 days of commencing a well to fully earn the 50% working interest.
In the Central North Sea, Bridge will purchase Century's 25% interest in a 25th Round traditional drill-or-drop licence comprising full Block 9/26 and split Blocks 9/21 and 9/27b. Bridge will acquire this interest for payment of Century's licence application costs. The other interest holders comprise Valiant Exploration Limited (50%, Operator) and Silverstone CNS Limited (25%).
Both acquisitions are subject to approval of the assignments by the Secretary of State and regulatory approval.
Statements in this press release may contain forward-looking information including expectations of future operations, commerciality of any gas discovered, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
Neither 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.
Bridge Resources Corp.
Edward J. Davies
Bridge Resources Corp.
Bridge Resources Corp.
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