Bear Ridge Resources Ltd.
TSX : BER

Bear Ridge Resources Ltd.

January 30, 2006 13:23 ET

Bear Ridge Resources Ltd. Announces 2006 Capital Program and Provides Operational Update and Guidance

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2006) - Bear Ridge Resources Ltd. (TSX:BER) ("Bear Ridge"or the "Company") is pleased to provide an operations update on recent activities and the Company's 2006 capital program and related guidance.

2006 CAPITAL BUDGET AND OPERATIONAL GUIDANCE

The Board of Directors of Bear Ridge recently approved our 2006 capital budget of $80 million which is expected to be funded through a combination of cash flow and credit facilities. The capital program provides for the drilling of 78 (46.5 net) wells and an investment of $17 million in land and seismic and $10 million in facilities and infrastructure. Approximately 65% of Bear Ridge's capital spending has been targeted for opportunities in our core properties in the Peace River Arch and Northeast British Columbia with the balance aimed at core projects in West Central and Central Alberta.

Bear Ridge is forecasting average production of 5,000 to 5,500 barrels of oil equivalent ("boe") per day during 2006 with an exit target of 6,000 to 6,500 boe per day, weighted approximately 80% to natural gas.

OPERATIONS UPDATE

Bear Ridge's 2005 capital program delivered strong production growth from 280 boe per day in January, 2005 to our forecast year-end exit rate of 2,000 boe per day. In November, 2005 Bear Ridge announced an agreement to acquire Veteran Resources Inc. and on January 19, 2006 we closed this strategic corporate acquisition. As a result, Bear Ridge's production has grown to over 4,000 boe per day with an additional 700 boe per day completed and awaiting tie-in.

Bear Ridge has maintained strong operational momentum into 2006 and our exploration program continues to deliver solid results. Bear Ridge drilled and cased a total of 9 (4.5 net) wells over the past few months, of which 4 (1.5 net) wells are completed and awaiting tie-in and 5 (3 net) wells are waiting on completion. In addition, we are currently drilling 6 (2.1 net) wells and our capital program anticipates drilling 14 (7.8 net) additional wells prior to breakup.

Despite record high industry land prices we continue to grow our undeveloped land base and our drillable prospect inventory. Bear Ridge currently owns approximately 102,000 net undeveloped acres and has the right to earn interests in an additional 85,000 acres pursuant to various farm-in agreements.

Consistent with our technically-driven drillbit growth strategy, Bear Ridge continues to invest considerable capital in 3D seismic in order to capture new drilling opportunities and to reduce drilling risk. Bear Ridge currently owns 900 square kilometers of proprietary and trade 3D seismic data and 4,100 kilometers of 2D seismic data. We also plan to shoot an additional 300 square kilometers of 3D seismic in the first half of 2006 to evaluate Bear Ridge acreage, open crown lands and lands under farm-out to Bear Ridge.

Bear Ridge is a junior Canadian exploration, development and production company with operations focused in the West Central and Peace River Arch areas of Alberta. The common shares of Bear Ridge are listed on the Toronto Stock Exchange, under the symbol "BER".

ADDITIONAL INFORMATION

Additional information regarding Bear Ridge and its business and operations, including the annual information form for Bear Ridge Resources Ltd. for the period ended December 31, 2004, is available on Bear Ridge's website www.bearridgeresources.com and Bear Ridge's SEDAR profile at www.sedar.com

Forward Looking Statements - Certain information regarding Bear Ridge Resources Ltd. set forth in this document, including management's assessment of Bear Ridge Resources Ltd.'s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Bear Ridge Resources Ltd.'s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, current fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Bear Ridge Resources Ltd.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bear Ridge Resources Ltd. will derive there from.

Contact Information

  • Bear Ridge Resources Ltd.
    2200, 330 - 5 Avenue SW
    Calgary, Alberta T2P 0L4
    (403) 537-8450 (FAX)
    or
    Bear Ridge Resources Ltd.
    Russell J. Tripp
    Chief Executive Officer
    (403) 537-8440
    or
    Bear Ridge Resources Ltd.
    Douglas C. Hibbs
    President
    (403) 537-8440
    or
    Bear Ridge Resources Ltd.
    Brian A. Baker
    Chief Financial Officer
    (403) 537-8440
    Website: www.bearridgeresources.com