Bridge Resources Corp.

Bridge Resources Corp.

June 27, 2008 09:18 ET

Bridge Resources Corp. Announces Debt and Equity Financing

CALGARY, ALBERTA--(Marketwire - June 27, 2008) -


Bridge Resources Corp. (TSX VENTURE:BUK) ("Bridge") on behalf of its U.K. wholly-owned subsidiary Bridge North Sea Ltd. is pleased to announce that it has accepted from the Royal Bank of Scotland plc ("RBS") an offer to arrange a secured loan facility totalling Pounds Sterling 35,000,000 (the "Facility"). The Facility will be completed on a club deal basis with RBS acting as sole Mandated Lead Arranger. The Facility is inter alia contingent on (i) final Durango Plan of Development approval by The Department for Business Enterprise and Regulatory Reform; (ii) satisfactory legal documentation; (iii) due diligence and (iv) achievement of all required conditions precedent which are usual in such agreements. The Facility will be used primarily to finance the development of the Durango field. Gaining the financial support of RBS and access to its extensive North Sea experience is a significant milestone for Bridge which is in a strong position to pursue its program of development, appraisal and exploration going forward.

Bridge is also pleased to announce that it has entered into a bought deal financing agreement with Wellington West Capital Markets Inc. and Blackmont Capital Inc. (the "Underwriters") to issue 8,695,700 units (the "Units") at a price of $1.15 per Unit (the "Issue Price") for gross proceeds of $10,000,055 (the "Offering"). Each Unit will consist of one common share of Bridge (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable by the holder for one additional Common Share (a "Warrant Share") for a period of 18 months from the Closing Date (as defined herein) at a price of $1.35 per Warrant Share. In the event that Bridge's Common Shares trade at a closing price on the TSX Venture Exchange of greater than $2.00 for a period of 20 consecutive trading days at any time after four months and one day after the Closing Date, Bridge may accelerate the expiry date of the Warrants by giving notice to holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by Bridge.

The Offering of the Units is subject to certain conditions including normal regulatory approvals, including approval of the TSX Venture Exchange. The Units are being offered by way of private placement in certain provinces of Canada as agreed between the Underwriters and Bridge and in other jurisdictions on a private placement basis pursuant to applicable exemptions from registration and prospectus requirements. Closing is anticipated to occur on or about July 10, 2008.

Bridge will apply the net proceeds of this issue toward drilling of the North Piper oil exploration well in Central North Sea and for general corporate purposes.

Bridge has also completed an interim $10,000,000 short term financing arrangement with an arm's length private equity lender ("the Financing"). Pursuant to the terms of the Financing, Bridge has issued the Lender, 4,000,000 warrants (the "Warrants"). Each Warrant is exercisable into one common share of Bridge at a price of $1.30 until December 25, 2009. All of the Warrants issued in connection with the Financing are subject to a four-month hold period until October 26, 2008.

Wellington West Capital Inc. received a payment of $150,000 from Bridge as a commission for arranging the Financing.

Bridge also announces that it has exercised its option to acquire an 8% royalty interest from Warwick Energy Limited on the Durango 48/21a-4z well.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The Common Shares will not and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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 company. 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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