Pescod tonite!!!!Bridge Resources (BUK-V) $0.95 +0.010
It was arguably one of the biggest oil and gas targets to
be drilled this year, and yet one look at the chart of Bridge
Resources, (BUK-V) tells you that in this market there is a
lot more fear than greed, and there was never any anticipation or excitement in the market before results did come
out on their Piper Play.
I guess the good news is the well costs less than expected and came in almost 5 days to a week before schedule. But then when the well comes up with nothing to
show for itself, that’s the disappointment.
The market reaction is what you would expect to not
hitting a 400 to possible 500 million barrel play, which was
the Piper Play in the North Sea. What next for Bridge,
which remember has a fair chunk of shares outstanding,
(close to 100 million shares with a bucket of warrants).
But its interesting to finally see some analysts step up to
the play and give their thoughts on what’s next for Bridge
because they do have a long list of plays out there.
Analyst, Alexander Kline, of Blackmont Capital writes,
“Last Friday Bridge announced that it had completed the
Durango project debt financing facility with Royal Bank of
Scotland, and that it had been granted field development
approval for Durango. Other operating, and financial initiatives that were announced include: 1) conversion of the
US$10 million short-term debt facility into a 5-year, US$20
million convertible note; 2) confirmation that first production out of Durango will take place in Oct/08; 3) purchase
of natural gas hedging contracts; & 4) decision to reinvest
a substantial portion of Durango cash flow into the six
well drilling program scheduled for 2009. This will include
one gas development well, 3 gas exploration wells in the
Southern North Sea Area (Aspen, Trent & Tyne) & 2 exploration oil wells in the Central North Sea area.”
Bridge has a total of 20 blocks, comprised of 6 in the
central, and 14 in the southern North Sea according to
Analyst Kline. His target is $1.25.