Bridge Resources Corp.

Bridge Resources Corp.

February 18, 2010 09:00 ET

Bridge Resources Corp. Resumes Durango Production

CALGARY, ALBERTA--(Marketwire - Feb. 18, 2010) - Bridge Resources Corp. (TSX VENTURE:BUK) ("Bridge") is pleased to advise that it resumed production from its UK North Sea Durango Field at 16:00 hours on February 17, 2010. Prior to resumption of production, the Waveney Platform operator replaced the production meter and completed required platform maintenance. 

Bridge made the commercial decision to shut-in Durango July 2, 2009 to recover gas reserves backed-out during the initial production period that commenced November 27, 2008. The decision to shut-in the well was facilitated by a financial gas hedge at 50p/therm ($8.00/mcf) on 4.8 bcfg.

Bridge has been repaid 1.4 bcfg while the well has been shut-in, reducing the back-out gas credit to 0.7 bcf. Payment from back-out gas has remained at a high level with Bridge receiving £1.3 million ($2.0 million) since January 1, 2010. Production resumption will boost revenue due to higher net gas volumes at higher prices and associated condensate production of 24 bbls/mmcf.

The well has been restarted at the constrained rate of 10 mmcfd gas and 240 b/d condensate on a 20% choke with a flowing pressure of 1,842 psi. The flow rate will be progressively increased to calibrate the back-out gas percentage and then held at a level to optimize net gas production to Bridge with minimal back-out. Bridge will further advise the optimal production rate. There is no back-out for condensate at any production level.

As a result of the extended Durango shut-in period, Bridge's UK banking syndicate RBS-KBC-NAB has extended Bridge's debt facility for an extra six months through December 31, 2013. Bridge has agreed to the extension and will make a principal repayment of £4.235 million bringing down the loan balance to £29.97 million ($47.35 million). Bridge will make a further loan repayment on June 30, 2010 with the minimum amount of this payment based on redetermination of Durango reserves at March 31, 2010 (the fiscal year end of Bridge). With its current working capital level and forecast cash flow, Bridge will focus on accelerated debt reduction initiatives for both its primary debt facility and the secondary debenture facility.

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.

Contact Information