Bridge Resources Corp. Closes North Sea Sale and Restructures Financing
March 16 2011 - 9:52AM
Marketwired
Bridge Resources Corp. ("Bridge") (TSX VENTURE: BUK) is pleased to
announce that it has now completed the sale of its wholly owned UK
subsidiary Bridge North Sea Ltd. ("BNSL") to Perenco UK Limited in
accordance with the terms and conditions previously announced on
February 16, 2011.
Bridge is also pleased to announce that it has agreed financial
restructuring terms with the Royal Bank of Scotland plc. ("RBS"),
National Australia Bank Limited ("NAB"), and KBC Bank NV ("KBC")
for its senior debt facility. The loan term through June 30, 2014
is unchanged and the interest rate is LIBOR plus a blended rate of
5.15% (6.0% combined). Future 25% net profits income (18% after
tax) from Durango Field will be applied to reduce the current loan
principal of Pounds Sterling 27.588 million.
The cash component from the sale of BNSL, Pounds Sterling
5,500,000 ($8,900,000 equivalent) less Stellar Energy Advisors Ltd.
commission and fees, will be credited to Bridge Energy Inc., a
wholly-owned US subsidiary of Bridge, for Idaho development. This
amount will fund Bridge's 50% share of development costs through
first production.
A separate release with details on the Western Idaho Basin
development project will follow. Bridge expresses its appreciation
to RBS, NAB, and KBC for their support of the project.
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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