In a brief two-paragraph statement, Bridge Resources - once trumpeted as the face of Idaho's new gas exploration bonanza - announced Monday that its shareholders had approved selling the bulk of its Idaho's interests.
Two years ago, Bridge was actively negotiating scores of land leases with families throughout Payette County in anticipation of a booming gas-drilling operation. Bridge found success in the majority of its early drilling, but ran into snags behind the scenes. In a BW investigation, it turned out that Bridge's financial resources were sparse, sending its stock on the Toronto Exchange down to less than 10 cents a share. This morning, it was trading at less than 1 cent per share.
Bridge CEO Nick Clayton told Citydesk that the asset sale was crucial.
"I can tell you that we've been in a desperate attempt to save this company," said Clayton. "We owe approximately $46 million to the Bank of Scotland."
Clayton also confirmed that Bridge owes approximately $800,000 to Idaho contractors and subcontractors, who have not been paid for their work in much of 2010 and early 2011.
"This sale enables Bridge to satisfy most of our creditors," said Clayton.