Bridge Resources Corp. (Bridge) on behalf of its U.K. wholly-owned subsidiary Bridge North Sea Ltd. is has reached agreement to purchase the 8% royalty on Blocks 48/21a and 48/21b from Warwick Energy Limited (Warwick). The blocks contain the Durango gas prospect that is currently being appraised by the 100% working interest 48/21a-4 well, currently drilling below 20” casing.

Under the terms of the agreement, Bridge will pay Warwick a £1,000,000 non-refundable deposit in return for the right to purchase the royalty outright for an incremental £2,000,000 payment prior to June 30, 2008.

The purchase would realize 3.4 bcfe contingent resources to Bridge based on the current P50 Durango contingent resources estimate of 42.4 bcfe. The £3,000,000 purchase price equates to 8.8p/therm ($1.76/mcf). There are no incremental capital costs associated with a royalty purchase.

Tags: Bridge Resources Corp., Warwick Energy Limited