Bridge Resources Corp.

Bridge Resources Corp.

November 10, 2009 09:02 ET

Bridge Resources Corp. Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2009) - Bridge Resources Corp. ("Bridge")(TSX VENTURE:BUK) is pleased to provide the following corporate update (all $US unless specified):

Gas prices remain low in the UK North Sea, averaging 25 p/therm ($4.00/mcf) and, due to the continued low prices, Bridge has kept its 100% interest Durango well shut-in. Prior to shut-in on July 2, 2009, Durango had produced 4.67 BCFGE. An interim reserves calculation by GLJ Petroleum Consultants, Calgary effective September 30, 2009 in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities assigns Bridge 23.16 BCFGE remaining Proved and Probable Reserves with an undiscounted value of $226 mm based on NBP-ICE UK prices. Senergy, Aberdeen is representing Bridge in current discussions with the other LAPS Pipeline producers to reach agreement on production profiles net of gas back-out.

Bridge has continued to receive significant net revenue during the shut-in period as a result of its financial put in effect from July 1, 2009 through June 30, 2010. This financial put pays Bridge the difference between actual gas prices and 50 p/therm ($8.00/mcf) on an average 13 MMCFGD without Bridge physically having to deliver any gas. This put revenue is further supplemented by repayment to Bridge of back-out gas from other fields producing into the LAPS Pipeline. For the four months July through October 2009 Bridge has received revenue of $7.2 million and projects additional revenue of $15.4 million through June 2010 should it continue to leave the well shut-in. Bridge does intend to resume production should UK gas prices increase for the Winter 2009-2010 period as anticipated.

With regard to corporate financing, the RBS-KBC-NAB Pounds Sterling 34,200,000 ($54,000,000) senior debt facility interest payments have steadily reduced with the decline in LIBOR rates. The current rate paid by Bridge is 3.1013% per annum. Interest payments on the secondary K2 C$20,000,000 facility of 10% per annum are paid in Bridge shares with a deemed minimum share price of $0.83.

Even though Bridge's debt interest payments are low, Bridge has the corporate goal of reducing its debt level. Bridge has appointed a financial institution to achieve both debt reduction and increased working capital through monetization of assets. North Sea drilling costs have reduced commensurate with the decline in commodity prices and Bridge plans to drill two wells in 2010.

Onshore USA, the TSX-V has approved the acquisition of the Boise Basin assets and Bridge has formed a new wholly-owned subsidiary Bridge Energy Inc. to operate its 50% interest. Bridge and its 50% partner Paramax Resources Ltd. have agreed locations for the first five wells with planned drilling commencement January 2010.

Billion Cubic Feet of Gas Equivalent: Where amounts are expressed on a billion cubic feet of gas equivalent ("bcfge") basis, natural gas volumes have been converted from barrels oil at a ratio of 6,000 cubic feet of natural gas to one barrel of oil. 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. Bcfge figures may be misleading, particularly if used in isolation.

The estimated values do not represent fair market value of the reserve estimates.

Statements in this press release may contain forward-looking information including expectations of 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. 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 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.

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