CALGARY, ALBERTA — (Marketwire) — 08/02/11 — Bridge Resources Corp. (TSX VENTURE: BUK) (“Bridge”) has filed its financial statements for the year ended March 31, 2011 together with its related Management–s Discussion and Analysis on SEDAR. These statements reference the financial requirements for Bridge to achieve first production in Idaho, targeted for later this year. Bridge encourages readers to review such statements and related Management–s Discussion and Analysis for complete details on Bridge–s financial position.
Bridge is forecasting a remaining $5,500,000 gross capital expenditure cost (50% of which is net to Bridge) to complete the necessary infrastructure to achieve first production and initial cash flow with respect to its Idaho assets.
Bridge is fully current with interest payments on its senior facility but is not in compliance with the associated debt repayment schedule covenant. A restructuring of current debt arrangements or additional debt and/or equity financing is essential if Bridge is to meet current and future operating requirements. Bridge does not currently possess the financial resources to satisfy principal and interest payments due on its existing debt facilities in 2011. The Company expects any restructuring options will be subject to review of the submitted Bridge Field Development Plan to produce the Idaho reserves, joint venture participation, as well as other considerations. Bridge anticipates furthering negotiations with the Senior Lending Syndicate during this calendar quarter, however there can be no assurances of continued financial support from the Senior Lending Syndicate.
Management of Bridge believes the Idaho assets have significant potential based on the independent reserves and resources valuation by AJM Deloitte (formerly AJM Petroleum Consultants) effective December 31, 2010. Bridge has also engaged Cappello Capital Corp. of Santa Monica, California to assist the Company with raising capital for several potential initiatives. The initiatives may include development financing of the Willow and Hamilton fields and restructuring of notes and debt.
Bridge, on behalf of its joint venture with its partner, has acquired the majority of the permits and agreements for laying the pipeline to Willow Field. The line pipe itself has been purchased together with an option to acquire 13 acres of land for location of a gas processing plant on the Northwest Pipeline. A Conditional Use Permit request has been submitted to the Payette County Commissioners and will be reviewed for approval in the next meeting scheduled for August 18, 2011.
The Willow and Hamilton Fields, Idaho are the primary assets of Bridge. Bridge confirms its commitment to make its best efforts to achieve first production as efficiently as possible.
Statements in this press release may contain forward-looking information including expectations of the results from divestitures or strategic alternatives, expectations relating to future financings, expectations relating to continued support from Bridge–s senior Lending Syndicate, expectations relating to fist production of Bridge–s Idaho assets, 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. 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 continued support from Bridge–s senior Lending Syndicate will be available; there can be no certainty the regulatory, bank and other approvals required to achieve first production will be obtained in the time anticipated by Bridge or at all; and there can be no certainty that Bridge will be able to continue as a going concern . 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.
Contacts:
Bridge Resources Corp.
Edward Davies
303-831-9022