Stonebridge Closes First M.O.U.
HOUSTON, Apr 28, 2006 (PRIMEZONE via COMTEX News Network) --
Stonebridge Resources Exploration, Ltd. (Pink Sheets:SBRX) has executed its first Memorandum of Understanding (MOU) with Christian Operating Company for the acquisition of 50% of Christian's No. 4 Port Arthur asset. The MOU with Christian Operating is the first of several acquisitions undertaken by Stonebridge in an effort to attain revenue producing oil and gas assets.
North of Galveston, Port Arthur, Texas is situated in a prolific oil and gas producing region, which generates approximately 1.5 and 3.7 percent of the U.S.'s total oil and gas respectively. Companies, such as Motiva Enterprises (affiliate of Shell Oil Company and Saudi Refining, Inc.) and Premcor Refining Group, have a number of their refineries located in Port Arthur owing to its position along a major intra-coastal waterway which provides direct access to the Gulf of Mexico in addition to its proximity to major industry hubs.
"We are pleased at the timely completion of our MOU with Stonebridge," stated Phillip Christian, president and CEO of Christian Operating Company. "This is the first step towards the complete merger between Christian Operating and Stonebridge. We expect continued closings of previously announced MOUs."
As part of the first MOU, Stonebridge acquired the No. 4 gas well in Port Arthur, Texas, with 4 billion cubic ft. of natural gas.
With the acquisition of the Port Arthur well, Stonebridge has spent an additional $750,000 to increase production flow of the well's oil and gas. The funds have been forwarded to Christian Operating, which remains the operator of the Port Arthur wells. Management believes that oil production will increase to between 100 bbls to 150 bbls per day and natural gas will increase to 1.0 million cubic feet to 1.5 million cubic feet per day.
About Christian Operating Company
Christian Operating Company is a regional oil and gas company based in Houston, Texas. The company owns approximately 300,000 barrels of oil reserves and is producing from those reserves. Additionally, Christian has reserves of approximately 22 billion cubic feet of coal bed methane, which remain undeveloped at this time.
About Stonebridge Resources Exploration Ltd.
Stonebridge Resources Exploration Ltd., www.otcsbrx.com, is primarily engaged in the acquisition and development of oil and gas assets in continental North America. Stonebridge intends to continue to acquire in the oil and gas field and hopes to rework the new assets with technology to increase production and expand reserves.
Safe Harbor: The foregoing contains forward-looking statements. For this purpose any statements contained in this document that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, such words as "may," "will," "believes," "estimates," "continue," or comparable terminology intends to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending upon a variety of factors stated in the Company's filings with the Securities and Exchange Commission.