Bridge Resources Corp. has closed the previously announced acquisition 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 (the “Gas Field Asset”) and a 3.0625% carried interest in Block 48/22b North (collectively the “Assets”) for a sum of US$3,000,000 cash and 4,000,000 Common Shares of the Corporation (the “Proposed Acquisition”), and the grant of an 8% net royalty interest in the Gas Field Asset (the “Proposed Acquisition”). 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$12,000,000.
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.