Bridge Resources Corp. says that effective February 15, 2011 it has executed a formal sale and purchase agreement with Perenco UK Limited for the sale of its wholly owned subsidiary Bridge North Sea Ltd. (BNSL).

The primary asset in BNSL is the Durango Gas Condensate Field. An independent report by Senergy (GB) Ltd. dated September 30, 2010 indicated a large range of reserves and resources contingent on the level of further investment. Accordingly, Bridge and Perenco have agreed to a sale structure comprising a cash component and a deferred consideration component providing for Bridge to receive a share of future production income.

Pursuant to the terms of the Sale Agreement, Bridge has agreed to sell BNSL to Perenco for an initial cash consideration of £5,500,000. In addition and on an ongoing basis, Bridge will be entitled to receive from Perenco 18% of any profits it generates from UK Petroleum Production Licence P.1061 that contains the Durango Field. This deferred consideration equates to a 25% net profits interest on a tax-adjusted basis. Bridge will also retain the revenues from the balance of back-out gas accrued to BNSL.

The cash component from the sale is for the credit of Bridge Energy Inc., a wholly-owned U.S. subsidiary of Bridge. The deferred consideration will be applied to reduction of debt.

Stellar Energy Advisors Limited ("Stellar") managed the BNSL sale process on behalf of Bridge.

The sale of BNSL marks a strategic shift in geographic focus to the development of existing oil and gas assets in the onshore Western Idaho Basin of the United States.

Tags: Bridge Resources Corp., Perenco