RockBridge Resources Inc., Calgary, (TSX: RBE) has reported that the sale of RockBridge Minerals Inc., the wholly owned subsidiary of RBE wherein a 100% of RockBridge's mineral assets were held, has been completed to Cache Exploration Inc. (TSX: CAY). RBE now owns 9.05% on a partially diluted basis of Cache Exploration. This marks the completion of the process announced at the beginning of the year to transition RBE into a pure play oil and gas company.
RBE has now begun the process of rationalizing its non-core oil and gas assets which will involve efforts to sell some of its current holdings that do not possess the ability to add materially to the growth of production and reserves for the company. It is anticipated that this process will take several months.
The company will focus throughout the rest of the year on its Cardium oil development opportunities and new land positions and prospects that it is investigating. The new assets would involve the company taking on a working interest of a size such as to make them material in terms of production and reserves additions on success. We hope to have further details on new assets soon.
The company has also begun a search for merger candidates to increase its enterprise size. We have had discussions with a number of private companies that if merged with RBE could significantly increase our production and reserves. Clearly finding an accretive and affable merger candidate is complex endeavour and one that the company may not ultimately realize successfully.
"The company is now in a position where it can focus on adding oil and gas production and reserves in the Western Canadian Sedimentary Basin," says Richard Wolfi, president and CEO. "We are executing on a three pronged approach: first through organic growth that will include adding new and exciting prospects, second by rationalizing assets to recommit resources to higher impact opportunities, and thirdly by pursuing a corporate level transactions."
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