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 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.

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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