Bridge Resources Corp.
TSX VENTURE : BUK

Bridge Resources Corp.

August 18, 2009 09:00 ET

Bridge Resources Corp. Announces 2009-2010 First Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2009) - Bridge Resources Corp. ("Bridge") (TSX VENTURE:BUK) has filed its financial statements and management discussion and analysis for the quarter ending June 30, 2009. These can be accessed electronically from the SEDAR website at www.sedar.com.

Bridge is pleased to announce that it recorded revenue of US $8,035,011 for the quarter ending June 30, 2009 compared to revenue of US $5,303,508 for the previous quarter ending March 31, 2009. The revenue increase was due to continued strong performance of the Durango well that averaged 23.5 mmcfgd and 552.7 bopd for the 83 operating days in the quarter.

Key Events

- Durango well has continued to produce strongly at an average daily production of 4,477 BOE

- Durango well has produced 4.025 BCFG and 105,000 barrels of oil through June 30, 2009

- Bridge realized revenue of US$ 8.0 million in last quarter

- Net cash flow from operations was US$ 5.6 million in last quarter

- Hedge provided cash of US$ 1.4 million in first of twelve months hedge period

- Remaining hedged gas is 4.4BCF over the next 11 months at 50 p/therm (US$ 8.25/mcf) strike price

Operating Highlights - 3 months ended June 30, 2009



Daily average volumes Gross Sales Volume
back-out (net back-out) Production net
----------------------------------------------------------------------------
Condensate and NGL (bbl/d) 553 524
Natural gas (mcf/d) 23,500 12,000
Total oil equivalent (boe/d) 4,477 2,523

Average prices
---------------
Condensate and NGL ($/bbl) 53.15
Natural gas (US$/mcf) 4.35
Natural gas including hedging (US$/mcf) 5.75

Metrics
--------
Operating netback (US$/boe) 31.73
Operating netback including hedging (US$/boe) 38.37
Transportation ($/boe) 5.38
Production expenses ($/boe) 0.57
General and administrative ($/boe) 3.37


Events Subsequent to June 30, 2009

Bridge has shut-in the Durango well since July 2, 2009 due to low gas prices, the gas hedge in place, and the desire to produce reserves in future higher price periods. However Bridge still anticipates strong revenue for the current quarter ending September 30, 2009 primarily due to the financial gas hedge in place. The July put payment received thus far amounts to Pounds Sterling 954,180 (US $1,600,000), which will be supplemented by the August and September hedge payments; by revenue from oil and gas sales prior to the Durango well shut-in; and by repayment of back-out gas during the well shut-in period. Bridge has a financial hedge on an average 400 mmcf gas per month for which it receives the difference between 50p/therm ($8.25/mcf) and the monthly average price. The monthly average price has been around 22p/therm such that Bridge has received 28p/therm ($4.62/mcf) on an average 12.9 mmcfgd without physically having to produce any gas.

Bridge is making a voluntary debt repayment this quarter and will be making a further substantial debt reduction payment in the next quarter on its senior debt facility. Details of the junior convertible debenture facility agreement are included in the Financial Statements but it should be noted that the Bridge makes the interest payments on this facility through issuance of common stock. The number of common shares issued pursuant to the facility agreement is calculated at the current market price or $0.83, whichever is greater. Although the recent price of the common stock has been lower, Bridge has issued all stock in relation to this facility at $0.83.

With the Durango well temporarily shut-in, Bridge is taking the opportunity to conduct an extended pressure build-up test with the results to be incorporated in the next GLJ Petroleum Consultants Ltd. reserves report that will be effective September 30, 2009 and released shortly thereafter.

Bridge is progressing initiatives on its North Sea exploratory holdings. Bridge is also finalizing the Boise Basin acquisition and the newly-formed subsidiary, Bridge Energy Inc., will file drilling permit applications for five wells on completion of the transaction. This strategic acquisition provides low cost, high potential, early cash flow opportunities supplementary to Bridge's North Sea existing portfolio of drilling opportunities.

The TSX Venture Exchange has upgraded the Corporation as a Tier 1 Issuer pursuant to the Policies of the TSX Venture Exchange.

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 Corporation. 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.

Barrel of Oil Equivalent: Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural gas volumes have been converted to boe at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon an energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. Boe figures may be misleading, particularly if used in isolation.

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.

Contact Information