Bridge Energy ASA : First Oil from the Cormorant East Field ...

14 Jan 2013

Bridge Energy ASA

("Bridge", "Group" or "the Company")

First Oil from the Cormorant East Field sets new benchmark

Bridge, the Oslo Børs and AIM listed oil and gas exploration and production company (OSE: BRIDGE/ AIM: BRDG.L), is pleased to announce first oil production from the Cormorant East Field ("Cormorant East") in UK Northern North Sea Block 211/22a Contender Area (the "Contender Block") in which Bridge retains a 4% interest. The initial production rate is approximately 5,500 barrels of oil per day (approximately 220 barrels of oil per day net to Bridge).  First oil was achieved only 85 days after discovery of the field, thereby establishing a new benchmark for the UKCS.

Cormorant East was discovered by exploration well 211/21-N94 (the "Contender Well"), as previously announced in October 2012. Production is being processed at the North Cormorant platform operated by TAQA Bratani Limited ("TAQA") before being exported to the Sullom Voe terminal for sale.

Cormorant East is initially being produced under primary depletion with a single production well equipped with an electric submersible pump. The production data from this initial phase will be used by the partnership to determine whether to further develop the field by using a water injection well to support the production. 

The operator's analysis of the field data indicates significant potential for upside.  Subject to the reservoir response of the existing well, further appraisal locations have been identified within the Cormorant East development area, both down-dip from the existing discovery well and in adjacent fault panels.

Other interests in the Contender Block are TAQA 60% (Operator), Dana Petroleum (E&P) Limited 20%, Antrim Resources (N.I.) Limited 8.4% and First Oil Expro Limited 7.6%. Under the terms of the farm-out agreement with TAQA, Bridge's share of the drilling, completion and tie-in costs for the Contender Well were funded by TAQA and will be recovered by TAQA from Bridge's share of initial production revenue.
Tom Reynolds, CEO of Bridge Energy, commented:
"We are delighted to announce first oil at Cormorant East.  This production will provide both diversity to our producing asset base and incremental cash flow to support our busy 2013 exploration programme."

- Ends -

For further information, please contact:

Bridge Energy
Tom Reynolds, Chief Executive
[e-mail]
Aberdeen                                                  [phone]

Cenkos Securities
Jon Fitzpatrick                                          [phone]
Neil McDonald                                         [phone]

FTI Consulting
Edward Westropp/Natalia Erikssen           [phone]
[e-mail]

Statutory guidance statements
This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

The information contained in this announcement has been reviewed and approved by Ernest Edwards, Operations Director, Bridge Energy UK Ltd.  Ernest holds a MSc in Petroleum Engineering from Imperial College (London) and has been a practising Reservoir and Petroleum Engineer for over 20 years and is a member of the Society of Petroleum Engineers (SPE). He has compiled, read and approved the technical disclosure in this regulatory announcement

The technical disclosure in this announcement and the estimates in the CPR are based on the definitions and guidelines set out in the 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).These definitions and guidelines can be found on the SPE website at www.spe.org.

Notes to Editors
Bridge Energy is an oil and gas exploration and production company which holds production licences in the UK (North Sea) Continental Shelf and exploration assets in both the UK and Norwegian Continental Shelves. The company is listed on the Oslo stock exchange (OSE: BRIDGE) and the London stock exchange (AIM: BRDG.L).

The Company has a significant number of licences both within the UK and NCS, including several operatorships.  Bridge has drilled 17 exploration and appraisal wells, including ten discoveries.

Underpinned by existing production from its operated Victoria field, non-operated Duart field, non-operated Boa field and now the non-operated Cormorant East field, Bridge boasts a high impact exploration portfolio with a strong inventory of undeveloped gas discoveries which represents a sustainable business platform for production and exploration growth in the North Sea.