Bridge Resources Corp.

Bridge Resources Corp.

March 16, 2011 09:53 ET

Bridge Resources Corp. Closes North Sea Sale and Restructures Financing

CALGARY, ALBERTA--(Marketwire - March 16, 2011) - Bridge Resources Corp. ("Bridge") (TSX VENTURE:BUK) is pleased to announce that it has now completed the sale of its wholly owned UK subsidiary Bridge North Sea Ltd. ("BNSL") to Perenco UK Limited in accordance with the terms and conditions previously announced on February 16, 2011.

Bridge is also pleased to announce that it has agreed financial restructuring terms with the Royal Bank of Scotland plc. ("RBS"), National Australia Bank Limited ("NAB"), and KBC Bank NV ("KBC") for its senior debt facility. The loan term through June 30, 2014 is unchanged and the interest rate is LIBOR plus a blended rate of 5.15% (6.0% combined). Future 25% net profits income (18% after tax) from Durango Field will be applied to reduce the current loan principal of Pounds Sterling 27.588 million.

The cash component from the sale of BNSL, Pounds Sterling 5,500,000 ($8,900,000 equivalent) less Stellar Energy Advisors Ltd. commission and fees, will be credited to Bridge Energy Inc., a wholly-owned US subsidiary of Bridge, for Idaho development. This amount will fund Bridge's 50% share of development costs through first production.

A separate release with details on the Western Idaho Basin development project will follow. Bridge expresses its appreciation to RBS, NAB, and KBC for their support of the project.

Statements in this press release may contain forward-looking information including expectations of the results from divestitures or strategic alternatives, ongoing obligations with respect to UK Petroleum Production Licence Number P1061, expectations respecting the closing of the sale transaction, 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. While management believes that the expectations and assumptions underlying such forward-looking information are accurate, the reader is cautioned that the expectations and assumptions used in the preparation of such information may prove to be incorrect. Assumptions contained in such forward-looking information include, but are not limited to, the assumption respecting the percentage of profits Bridge will be entitled to from UK Petroleum Production Licence Number P1061 and assumptions respecting the closing of the sale transaction including the receipt of necessary regulatory and TSX Venture Exchange approvals. 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 Bridge. These risks include, but are not limited to: general risks associated with the oil and gas industry and the exploration, development and production of oil and natural gas; risks associated with changes in commodity prices and exchange rates; there can be no certainty that any profits will be generated from UK Petroleum Production Licence Number P106; there can be no certainty the regulatory, bank and TSX Venture Exchange approvals will be obtained in the time anticipated by Bridge or at all; and there can be no certainty that the sale transaction will close in the timelines currently anticipated by Bridge or at all . 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