Bridge Resources Corp.
TSX VENTURE : BUK

Bridge Resources Corp.

January 28, 2010 09:25 ET

Bridge Resources Corp. Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Jan. 28, 2010) - Bridge Resources Corp. (TSX VENTURE:BUK) ("Bridge") is pleased to provide the following corporate update (all $US unless specified):

Durango Production

Bridge plans to resume production from its 100% interest Bridge North Sea Ltd. Durango 48/21a-4Z well as soon as weather conditions permit. The Waveney Platform operator has been waiting for a three day weather window, free of ice and fog, since mid-December to undertake required offshore switching and maintenance operations prior to restarting the well remotely from the onshore Bacton terminal.

The extended shut-in period since July 2, 2009 has demonstrated significant reservoir pressure recharge to refine the previous material balance reserve estimation. A revised independent reserve estimate in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities will be requested following resumption of production.

Durango Back-out Gas Status

The extended shut-in period has also demonstrated the integrity of the gas back-out agreement with Bridge receiving repayment over 1.0 BCFG while the well has been shut in. Bridge's back-out gas credit is now below 1.0 BCFG.

For the current month through January 24, Bridge has been receiving an average 5 MMCFGD repayment despite system downtime due to adverse weather. Individual daily payback rates have been as high as 11.0 MMCFGD and monthly back-out repayment revenue through January 24 is $780,000.

On resumption of production Bridge plans to coordinate closely with the LAPS pipeline operator to minimize back-out gas deductions. Even though Bridge receives significant back-out repayment revenue with the Durango well shut-in, revenue will be boosted with the restart of production due to higher net gas volumes, the rich condensate yield of 25 BBLS/MMCF, and the higher UK gas and oil prices. Condensate production is not subject to back-out.

Gas Hedging

UK gas prices indicated a possible futures floor mid-December and Bridge elected to monetize all its monthly hedges through May 2010. Only the June 2010 monthly put remains to provide a hedge against lower gas prices in the summer. The net gain for 11 months actual plus the June forecast is $13.564 mm, comprising $16.183 mm revenue less the $2.619 mm put cost.

Debt Repayment

The RBS-KBC-NAB GBP 34,200,000 ($54,000,000) senior debt facility is in good standing with all required payments made. The current interest rate is 3.5494% per annum. Bridge will be making a significant principal repayment prior to month's end due to its strong cash position, currently at $13,000,000.

Bridge continues to evaluate opportunities and options to reduce or eliminate debt.

Drilling Portfolio

Bridge has restructured its North Sea portfolio to focus solely on gas development and oil opportunities. Bridge has two remaining commitment wells, Aspen and Steamboat, that it plans to drill in the second half of 2010. Aspen is a Durango tie-back gas prospect and Steamboat is a large Central North Sea 7,500 foot oil prospect. Bridge is seeking partners to participate in its drilling program.

Onshore USA, Bridge has been issued drilling state and county permits for five Boise Basin wells that it will operate with 50% interest in partnership with Paramax Resources Ltd. A subsequent press release will provide details on this project.

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.

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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