Bridge Energy ASA provide operational update
Monday, Jan 07, 2013

Bridge, the Oslo Børs and AIM listed oil and gas exploration and production company (OSE: BRIDGE/ AIM: BRDG.L) provides an operational update on progress made to date following a successful 2012 drilling programme.

Strategic progress

The Company has made significant progress during 2012 in each of its key result areas:

Production capability has grown through acquisition of the Boa field interest

Significant value has been created through low cost exploration with positive results and a 75% commercial success rate

Development assets have been matured providing opportunities for investment and production growth in the future

The resource base of the Company has been strengthened with additions in key disciplines

Successful listing on AIM in September 2012 and transferred from Oslo Axess to Oslo Børs main list November 2012.

Operational highlights

High impact exploration programme delivered three commercial oil discoveries from four exploration wells drilled 

  • The three discoveries yielded an estimated 75 mmboe recoverable resources (gross)/ 15mmboe (net to Bridge); with c. $60mm of value delivered through $7.5m of capital spend.
  • Oil discovered in the North Sea Contender Well in UK block 211/21; the field was developed and renamed as the Cormorant East Field.  First oil is expected this month.
  • Oil discovered in a high quality reservoir in PL554 Garantiana (operated by Total), estimated between 25 and 75mmbbl of recoverable resources (gross) / between 5 and 15 mmbbl (net to Bridge).
  • PL457 Asha discovery (operated by Wintershall) with good quality oil in an excellent reservoir, estimated between 25 and 35 mmboe of recoverable resources (gross) / between 5 and 7 mmboe (net to Bridge)
  • Total estimated increase to contingent (2C) resources in 2012 of approximately 30mmboe net to Bridge
  • Producing assets generating c.1,200 boepd - an increase of 10% from year-end 2011
  • Development studies underway for the Vulcan Satellites and Duart East, with infill drilling opportunities identified at the Boa field

    Corporate developments

    Completed the acquisition of the Boa field interest, adding production and further diversifying revenue base
  • Continued to review accretive acquisition opportunities to further leverage existing tax loss pool
  • Acquired two new licences in the 27th UKCS round; with several others pending
  • Applications submitted and pending in the NCS 2012 APA round
  • Farm-down of PL497 with substantial carry of exploration well cost
  • Farm-down of Aragon prospect completed December 2012
  • Farm-down of Southern North Sea Vulcan hub assets to be progressed  through Q1 2013

    Financial strength

    Successful listing on AIM providing access to a wider range of investors and enhancing liquidity
  • Grown cash flow through the Boa acquisition and increased bias to oil production as a result
  • Fully funded for the near-term programme from operational cash flow and existing debt facility
  • Financial flexibility through a Reserve Base Loan (£13 million drawn on a £42 million committed facility) and 400MNOK Norwegian tax facility
  • Significant tax pool providing further financial flexibility

    2013 plans

    Continue to focus on high impact, low cost exploration
    Three exploration wells expected to be drilled in 2013, including further exploration wells in areas adjacent to the Garantiana and Asha discoveries
  • Progress development options with our existing portfolio of assets
  • Production is expected to increase further following first oil from the Cormorant East field, along with Duart field re-start later in the year
  • Continue to review potential accretive acquisition opportunities
  • Full year-end 2012 results will be announced on 28th February 2013

    Source: Bridge Energy

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