Rockbridge to joint venture projects with Crimson Energy Ltd.
VANCOUVER, BC� RockBridge Resources Inc. (�RockBridge� or the �Company� - TSXV symbol: RBE) is pleased to announce that it has agreed to joint venture up to five Alberta oil and gas projects with Crimson Energy Ltd. of Calgary, through farm-out or purchase. The projects are low risk, near production opportunities and most involve completed wells presently tied in or near tie-in points, all containing producing zones indicated to have by-passed production.
In connection with the joint venture, RockBridge is pleased to announce that Michael J. O�Byrne of Calgary has been appointed the CEO and a director of the Company. Mr. O�Byrne, currently a Vice President of Crimson, has more than 16 years of wide ranging experience in oil and gas exploration, production and management.
The joint venture projects include Crimson�s 100% working interest in a Violet Grove area gas property, in which RockBridge, to earn 50%, is to pay 100% of the costs, estimated at $300,000, to frac, test and equip the existing well and tie it in to the gas gathering system servicing sweet gas production in the area. Estimated initial production from this project is at 500 mcf/ per day with a net to the 50% interest of approximately 25 barrels of oil equivalent per day, or 25 BOEPD.
A second project is the acquisition of Crimson�s 12.5% working interest in two sections in the Wapiti area, in which the operator is in the process of re-completing the existing well for the production of condensate rich natural gas. The price for this interest is $450,000 or such lesser amount as determined by professional reservoir engineers and shall be paid by RockBridge shares issued at $0.05 each. The estimated initial production from this interest, after the $63,000 share of re-completion expenses, is 650 mcf/per day with 26 barrels per day of condensate, which is the equivalent of approximately 17 BOEPD.
RockBridge, in order to finance these first 2 projects, is proceeding with a non-brokered private placement financing of up to $400,000 in flow-through units, subject to regulatory approval. Each unit is priced at $0.05 each and consists of one flow-through common share and one-half warrant, with each whole warrant exercisable for two years for one non-flow-through share at $0.15 each. Finder�s fees, subject to regulatory approval, of 8% will be paid to investment dealers or other qualified finders, and 8% brokers� warrants to brokers, with each warrant exercisable for two years for one regular share at $0.15.
The farm-in for the Violet Grove area project above includes an opportunity, subject to further financing, to farm-in to a further larger project, consisting of a test well, whereby RockBridge would pay 25% share of drilling and casing costs through the completion to earn a 15% interest.
Two additional joint venture projects are opportunities that participation will be made available to RockBridge once further work has been completed by Crimson.
The joint venture farm-out and acquisition projects described about with Crimson are subject to completion of due diligence, formal documentation and regulatory approval.
About RockBridge
RockBridge has, along with the joint venture projects with Crimson, 35% to 50% working interests in 5 sections in the Pembina Cardium field in Alberta. The Company and its partner have identified 15 low risk horizontal drilling locations on the properties. In addition, RockBridge has a 1.0% interest in the expanding Woodrush project in BC and various non-operated interests in Alberta.
For more information on RockBridge, please visit the website at www.rockbridgeresources.com, email info@rockbridgeresources.com,or call 604-687-4719.
ON BEHALF OF THE BOARD
ROCKBRIDGE RESOURCES INC.
Steve Mathiesen
Steve Mathiesen, CEO
This news release may include statements about expected further events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. RockBridge cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what RockBridge currently foresees. Discussion on the various factors that may affect future results is contained in RockBridge�s recent filings, available on SEDAR.
Reference to BOE means barrels of oil equivalent and is derived by converting gas to oil at the ratio of six thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner top and does not represent a value equivalency at the wellhead. References to BOEPD means barrels of oil equivalent per day
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
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