Bridge Resources Corp.: Sale of its wholly owned subsidiary Bridge North
Gas Basin, UKCS
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 £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
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.
Stellar acted as advisors to Bridge Resources Corp