Bridge Resources Corp. Enters Into Definitive Agreement to Sell North Sea Assets
17 February 2011 - 1:27AM
Marketwired
Bridge Resources Corp. (TSX VENTURE: BUK) ("Bridge") is pleased to
announce that effective February 15, 2011 it has executed a formal
sale and purchase agreement (the "Sale Agreement") with Perenco UK
Limited ("Perenco") for the sale of its wholly owned subsidiary
Bridge North Sea Ltd. ("BNSL").
The primary asset in BNSL is the Durango Gas Condensate Field.
An independent report by Senergy (GB) Ltd. dated September 30, 2010
indicated a large range of reserves and resources contingent on the
level of further investment. Accordingly, Bridge and Perenco have
agreed to a sale structure comprising a cash component and a
deferred consideration component providing for Bridge to receive a
share of future production income.
Pursuant to the terms of the Sale Agreement, Bridge has agreed
to sell BNSL to Perenco for an initial cash consideration of GBP
5,500,000. In addition and on an ongoing basis, Bridge will be
entitled to receive from Perenco 18% of any profits it generates
from UK Petroleum Production Licence P.1061 that contains the
Durango Field. This deferred consideration equates to a 25% net
profits interest on a tax-adjusted basis. Bridge will also retain
the revenues from the balance of back-out gas accrued to BNSL.
The cash component from the sale is for the credit of Bridge
Energy Inc., a wholly-owned U.S. subsidiary of Bridge. The deferred
consideration will be applied to reduction of debt.
Stellar Energy Advisors Limited ("Stellar") managed the BNSL
sale process on behalf of Bridge.
The sale of BNSL marks a strategic shift in geographic focus to
the development of existing oil and gas assets in the onshore
Western Idaho Basin of the United States.
Closing of the transaction is subject to the receipt of
necessary regulatory, bank and TSX Venture Exchange approvals.
Statements in this press release may contain forward-looking
information including expectations of the results from divestitures
or strategic alternatives, ongoing obligations with respect to UK
Petroleum Production Licence Number P1061, expectations respecting
the closing of the sale transaction, commerciality of any
discovery, future operations, 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. While management believes
that the expectations and assumptions underlying such
forward-looking information are accurate, the reader is cautioned
that the expectations and assumptions used in the preparation of
such information may prove to be incorrect. Assumptions contained
in such forward-looking information include, but are not limited
to, the assumption respecting the percentage of profits Bridge will
be entitled to from UK Petroleum Production Licence Number P1061
and assumptions respecting the closing of the sale transaction
including the receipt of necessary regulatory and TSX Venture
Exchange approvals. 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 Bridge. These risks
include, but are not limited to: general risks associated with the
oil and gas industry and the exploration, development and
production of oil and natural gas; risks associated with changes in
commodity prices and exchange rates; there can be no certainty that
any profits will be generated from UK Petroleum Production Licence
Number P106; there can be no certainty the regulatory, bank and TSX
Venture Exchange approvals will be obtained in the time anticipated
by Bridge or at all; and there can be no certainty that the sale
transaction will close in the timelines currently anticipated by
Bridge or at all . Industry related risks could include, but are
not limited to, operational risks in 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.
Contacts: Bridge Resources Corp. Edward Davies 303-831-9022
ejd@bridgeep.com www.bridgeresourcescorp.com
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