Bridge Resources Corp.

Bridge Resources Corp.

January 25, 2011 09:28 ET

Bridge Resources Corp. Announces Increase in Idaho Oil and Gas Reserves and Resources

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2011) - Bridge Resources Corp. ("Bridge") (TSX VENTURE:BUK) is pleased to announce an increase in its oil and gas reserves and resources in the Western Idaho Basin. The reserves, resources, and valuations were prepared by AJM Petroleum Consultants, Calgary, Alberta ("AJM") effective December 31, 2010 in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101.

Bridge drilled 11 gross (5.5 net) wells in the Western Idaho Basin in the period March through November 2010. Of these 11 wells, 7 were completed and have been assigned reserves: 5 as gas wells in the Hamilton Field and 2 as gas condensate wells in the Willow Field. The total cost for drilling 11 wells including completion and testing was $12 million ($6 million net to Bridge).

In accordance with NS 51-101 guidelines, AJM has assigned reserves only to individual calculated well drainage areas. The guidelines require that potentially larger drainage areas at an early stage of development be accounted for as contingent resources. Resultant Bridge net revenue interests, after royalty deductions, are summarized in the following table:

    Prior report   This report   Increase
    May 31, 2010   Dec 31, 2010   Percent
1P (Proved) Reserves BCFG   1.2   2.5   109
1P (Proved) Reserves MBO   12.6   31.3   148
NPV10 Valuation $MM   5.8   10.0   83
2P (Proved + Probable) Reserves BCFG   1.6   5.1   218
2P (Proved + Probable) Reserves MBO   16.8   41.7   148
NPV10 Valuation $MM   7.4   17.9   142
1C (Low) Contingent Resources BCFG   15.7   22.8   46
1C (Low) Contingent Resources MBO   66   159   141
NPV10 Valuation $MM   -   80.9   -
2C (Best) Contingent Resources BCFG   28.7   35.6   24
2C (Best) Contingent Resources MBO   167   280   68
NPV10 Valuation $MM   -   125.6   -
3C (High) Contingent Resources BCFG   54.3   58.4   7
3C (High) Contingent Resources MBO   425   514   21
NPV10 Valuation $MM   -   206.7   -

Contingent Resources exclude Reserves. The Proved plus Probable Reserves are thus valued at $17.9 million and the Best Case Contingent Resources are valued at $125.6 million.

The gross gas-in-place contingent resource estimates range from 88 BCF (Low) through 137 BCF (Best) to 235 BCF (High). The increase in the contingent resources is due to the Willow DJS 1-15 and DJS 1-14 wells. The DJS 1-15 well flow tested gas and condensate with no water from 156 feet of perforations in a 240 feet sand and shale interval.

The Willow DJS 1-14 well was plugged however it did test high quality gas from 6 feet of net pay underlain by 63 feet of oil-stained water-bearing sand. This sand interval correlates to the main reservoir in the Hamilton Field. In the Willow Field, the Hamilton Sand in the DJS 1-14 well correlates to and is down-dip from an indicated hydrocarbon zone in the original Willow ML 1-10 discovery well. The ML 1-10 was completed in a deeper zone such that this shallower Hamilton Sand remains untested behind pipe in this well bore.

Current Idaho operations activities include preparations to stimulate four Hamilton wells; acquisition of land on the Northwest Pipeline for location of a meter station; and pipeline right-of-way surveys.

Statements in this press release may contain forward-looking information including expectations of the results from divestitures or strategic alternatives, commerciality of any discovery, 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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