VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/13/13 -- RockBridge Resources Inc. ("RockBridge" or the "Company") (TSX VENTURE: RBE) is pleased to announce that its wholly owned subsidiary, RockBridge Energy Alberta Ltd., has entered into a formal purchase and sale agreement with the receiver of Avatar Energy Ltd. of Calgary, to purchase certain oil and gas properties in southern Alberta. The acquisition includes working interests from 25% to 95% in 6 wells producing a net of approximately 36 BOEPD, weighted 35% to crude oil and natural gas liquids and 65% to natural gas. The purchase also includes one gas property with a shut in well awaiting tie in. As a condition to the acquisition, the receiver required that RockBridge also acquire and take responsibility for a further 8 abandoned wells and their reclamation.
Consideration for the acquisition is $80,000 cash on closing, subject to adjustments, together with assumption of liabilities associated with the reclamation of the 8 abandoned wells. The transaction is subject to approval of the TSX Venture Exchange and other customary conditions. The transaction has an effective date of April 1, 2013 and is expected to close in July 2013.
The largest producing property, operated by a third party, is located in the Pembina area and includes the potential for up to 5 Cardium horizontal oil wells and other possible opportunities for improved production.
The Company also announces that Mike O'Byrne of Calgary has resigned as the President and CEO of RockBridge in order to focus on his own business endeavours. However, he remains as an active member of the Board of Directors. Steve Mathiesen has been appointed as President and CEO in the interim.
RockBridge continues with its consideration and review of other strategic alternatives for the Company with the objective of enhancing shareholder value, which may include new management, other new projects or other possible transactions. There is no set timetable for this process and the Company cautions that there can be no assurance that this review will result in any further transactions.
ON BEHALF OF THE BOARD
ROCKBRIDGE RESOURCES INC.
Steve Mathiesen, President & 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 news release.
RockBridge Resources Inc.
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