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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Reducing cash ISA limit will make lending difficult and expensive, warn providers
An open letter from the Building Societies Association has urged the chancellor to keep the cash ISA limit at £20,000. We look at whether a smaller cash ISA allowance will make it harder to get a mortgage or loan
-
Nvidia becomes world's first $4 trillion company
The AI boom has catapulted Nvidia’s share price to astronomic heights, becoming the world’s most valuable company and the first to pass the $4 trillion milestone