Bridge Energy buys small stake in productive North Sea field

Bridge Energy, the oil and gas company, has completed the acquisition of a small working interest in the producing Boa field in the North Sea from OMV (UK).

Bridge Energy, the oil and gas company, has completed the acquisition of a small working interest in the producing Boa field in the North Sea from OMV (UK).

Bridge is paying $18.1m for a 1.55% working interest in the field, back-dated to January 1st, 2012. The purchase adds around 0.5m barrels of proved plus probable reserves to Bridge's reserves.

The acquisition includes a transfer of around 40,000 barrels of oil stock which will be sold following completion for an estimated value of around $4.4m, based on prevailing prices of around $110 a barrel.

The acquisition is being funded through a combination of current cash and Bridge's existing reserve base lending facility, and increases the group's 2012 production by 230 barrels of oil per day and 0.2m cubic feet of gas per day, which is equivalent to 260 barrels of oil equivalent per day, combined.

The Boa field straddles the British and Norwegian parts of the North Sea. It was developed in 2008, and had produced around 25m barrels of oil up to the end of 2011. It is currently producing 15,000 barrels of oil per day.

"The completion of the Boa acquisition continues our previously stated strategy to build a solid cash flow base for future re-investment and growth. The Boa field delivers reliable production with very strong operating margins, which is efficiently supported by our accumulated tax pool in the UK," said Bridge's Chief Executive Officer, Tom Reynolds.

JH

Recommended

Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares in the week ending 5 August, providing an insight into how investors are thinking and where opportunities may l…
9 Aug 2022
Where to find inflation-resistant stocks
Investment strategy

Where to find inflation-resistant stocks

Terry Smith’s latest update contains some valuable pointers for investors looking to protect against inflation.
8 Aug 2022
A low-risk way to beat inflation
Share tips

A low-risk way to beat inflation

Demand for care-home places is strong and the sector should be able to raise prices ahead of costs, says Max King.
8 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022