Bridge Resources Corp V.BUK

Durango update

[2t3m]

Bridge Resources Corp. Provides Durango Status Report

https://www.marketwatch.com/news/story/bridge-resources-corp-provides-durango/story.aspx?guid=%7B2B0E2060-B0E0-411B-B5BA-9CED0603294A%7D&dist=hppr
Last update: 5:40 p.m. EDT Sept. 17, 2008
CALGARY, ALBERTA, Sep 17, 2008 (MARKET WIRE via COMTEX) -- Bridge Resources Corp. ("Bridge") (CA:BUK: news, chart, profile) has received an updated Durango Reserves Report from MHA Petroleum Consultants ("MHA") prepared in accordance with National Instrument 51-101 Standards for Disclosure of Oil and Gas Activities. Results are as follows (in US Dollar equivalents at 1.84 USD to 1.0 GBP):
Proved Plus Probable Reserves (2P): Gas 36.7 bscf; Condensate 950,000 bbls
Net Present Value Undiscounted: $ 332,000,000
Net Present Value Discounted at 10%: $ 263,700,000


The Present Values are net of $123.1 million sunk capital expenditures; net of $59.0 million operating, transportation and processing costs; and net of $176.6 million taxes on a Durango stand-alone basis. Past and future UK North Sea exploration and development investments would offset this future Durango tax liability, thus increasing the Durango net present values to Bridge.
Forward UK gas prices are strong and Bridge has the potential to further improve Durango profitability through implementation of gas price hedges when Durango is on stream. Bridge also anticipates that the existing hedge put of $9.20/mcf (50p/therm) for 4.8 bcf production will be replaced by a higher price put. Bridge wishes to emphasize that this existing put does not include an obligation to deliver gas at this price and the put was purchased solely as insurance against an unexpected drop in UK gas prices.
Durango development operations are continuing on schedule. The pipeline has been laid, the umbilical laying operation is currently in progress, and Waveney Platform modifications are continuing. These development activities are being debt financed by the Pounds Sterling 35,000,000 facility provided by the banking syndicate led by the Royal Bank of Scotland. This facility comprises a Pounds Sterling 30,000,000 tranche plus a Pounds Sterling 5,000,000 tranche which is available for unbudgeted costs. To date, Bridge has drawn approximately 80% of the Pounds Sterling 30,000,000 tranche.
Bridge anticipates first gas production from Durango next month.
Statements in this press release may contain forward-looking information including expectations of future operations, commerciality of any gas discovered, 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. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. 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 the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.
Contacts:
Bridge Resources Corp.
Edward J. Davies
President
[phone]
Email: [e-mail]

Bridge Resources Corp.
Dave Antony
Chairman
[phone]
Email: [e-mail]

Bridge Resources Corp.
Scott Koyich
Investor Relations
[phone]
Email: [e-mail]
Website: www.bridgeresourcescorp.com



SOURCE: Bridge Resources Corp.
mailto:[e-mail]
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https://www.bridgeresourcescorp.com

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