Press release from Marketwire
Birchcliff Energy Ltd. Announces Strong Third Quarter Results and an Operations Update
Thursday, November 10, 2011
Birchcliff Energy Ltd. Announces Strong Third Quarter Results and an Operations Update00:10 EST Thursday, November 10, 2011CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) -THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.Birchcliff Energy Ltd. ("Birchcliff")(TSX:BIR) is pleased to announce its financial and operating results for the third quarter of 2011. The full text of Birchcliff's Third Quarter Report containing the Condensed Financial Statements for the three and nine month periods ended September 30, 2011 and the related Management's Discussion and Analysis is available on Birchcliff's website at www.birchcliffenergy.com and will be available on SEDAR at www.sedar.com.CORPORATE SALE PROCESS On October 3, 2011 Birchcliff's Board of Directors announced a public sale process, seeking offers to purchase all of the outstanding shares of Birchcliff in its Press Release dated October 3, 2011. (Press control + click on link to access.) At the time of this announcement, Mr. Seymour Schulich, Birchcliff's largest shareholder, who holds approximately 26% of the outstanding shares of Birchcliff, said: "I fully support Mr. Tonken and his team in this potential sale endeavour. If a reasonable price cannot be achieved at this time, I am happy to continue as Birchcliff's major shareholder and I will continue to support Birchcliff at every opportunity." Consistent with Birchcliff's Press Release of October 3, 2011, Birchcliff does not intend to make any further announcements regarding the sale process unless and until the Board of Directors has approved a specific transaction or otherwise deems that disclosure of developments is appropriate.OPERATIONS UPDATE HIGHLIGHTSCurrent production is approximately 19,400 boe/day. As a result of the Phase III expansion of the Pouce Coupe South Gas Plant (the "PCS Gas Plant"), Birchcliff expects to exit 2012 producing approximately 28,000 boe/day. Birchcliff estimates its 2011 average production to be between 18,100 and 18,200 boe/day, slightly below its previous guidance of 18,500 boe/day. Birchcliff expects to add material proved developed producing, total proved and proved plus probable reserves by year end 2011. It is noteworthy that during the third quarter, Birchcliff brought on production 8 (6.7 net) horizontal Montney/Doig natural gas wells, adding production, proved producing and proved plus probable reserves. Birchcliff currently has 4 rigs working on its drilling operations. To date in 2011, Birchcliff has drilled 18 (15.2 net) Montney/Doig horizontal natural gas wells, of which 5 (5.0 net) were exploration wells. To date in 2011, Birchcliff has drilled 15 (15.0 net) Worsley light oil wells, of which 14 (14.0 net) were horizontal wells. Continued success with horizontal drilling and multi-stage fracture treatments on its Halfway and Doig light oil plays. Birchcliff is continuing its internal process to obtain regulatory approval for a Phase IV expansion of the PCS Gas Plant which would increase the processing capacity from 120 mmcf per day to approximately 240 mmcf per day. Birchcliff recently disclosed its land positions on certain resource plays including: Nordegg Resource Play720 (616.4 net) sectionsBanff/Exshaw Resource Play661 (648.0 net) sectionsDuvernay Resource Play198 (196.4 net) sectionsTHIRD QUARTER HIGHLIGHTS:Average production of 17,648 boe/day, is a 35% increase above the third quarter of 2010. Cash flow of $33.8 Million ($0.27/share), 49% above the third quarter of 2010. Net income of $11.4 Million ($0.09/share), 106% above the third quarter of 2010. Operating netback of $26.17/boe and cash flow netback of $20.84/boe in the third quarter of 2011 which is a 10.4% and 10.5%increase, respectively, from the third quarter of 2010. Continued to reduce operating costs per boe to $6.39, down 12.8% from the third quarter of 2010, down 5.2% from the second quarter of 2011 and down 8.3% from the first quarter of 2011. (For further details regarding Birchcliff's operating costs, please refer to the disclosures under the heading "PCS Gas Plant Operating Netback" in Management's Discussion and Analysis contained in the Third Quarter Report.)Net Capital expenditures of $72 Million in the quarter. Drilled 19 (15.4 net) wells, including 5 (4.9 net) Montney/Doig horizontal natural gas wells at Pouce Coupe, 6 (6.0 net) horizontal light oil wells at Worsley, 7 (3.5 net) Doe Creek light oil wells and one successful 100% working interest acid gas disposal well for the Phase III expansion of the PCS Gas Plant. Announced an increase to 229.3 Million boe of proved plus probable reserves as a result of an updated independent reserves evaluation at June 30, 2011. (See Press Release dated October 3, 2011) Announced the results of Birchcliff's updated Montney/Doig Natural Gas Resource Assessment. (See Press Release dated October 3, 2011) Commenced construction of Phase Ill of Birchcliff's 100% owned PCS Gas Plant that will increase processing capacity from 60 mmcf per day to 120 mmcf per day and which is scheduled to start-up by no later than November 1, 2012. Substantial industry activity on new resource plays in Birchcliff's core area. IFRS AdvisoryBirchcliff's financial data disclosed above have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board that was adopted by the Corporation on January 1, 2011, with an effective date of January 1, 2010. Previously, Birchcliff prepared its annual and interim financial statements in accordance with Canadian Generally Accepted Accounting Principles then applicable to publically accountable enterprises. Comparative information described above has been restated to comply with the requirements of IFRS. The adoption of IFRS does not impact the underlying economics of Birchcliff's operations. Further details are described in the "Transition to International Financial Reporting Standards" section of the Management's Discussion & Analysis portion of the 2011 Third Quarter Report. The full text of the President's Message and the Financial and Operational Highlights from the 2011 Third Quarter Report follows: November 9, 2011Fellow Shareholders, Birchcliff is pleased to report its third quarter financial and operating results for the three months ended September 30, 2011. In summary, Birchcliff had an extremely active quarter, drilling, constructing new facilities, completing new wells and adding new production. In addition, on October 3, 2011, Birchcliff announced the commencement of a corporate sale process, seeking offers to purchase all of the outstanding shares of Birchcliff. In conjunction with the announcement, Birchcliff announced its mid-year independent reserves evaluation and updated independent Montney/Doig resource assessment in its Press Release dated October 3, 2011. (Press control + click on link to access.) Birchcliff is focused on the construction of the Phase III expansion of its 100% owned Pouce Coupe South Gas Plant (the "PCS Gas Plant"), that is scheduled to start-up by November 1, 2012, together with the planning and execution of the Montney/Doig Horizontal natural gas well drilling program that will be required for the start up of Phase III. The PCS Gas Plant Phase III expansion will increase processing capacity from 60 mmcf per day to 120 mmcf per day, which will allow Birchcliff to achieve a 2012 exit production rate of approximately 28,000 boe/day. It is noteworthy that as a result of its continued drilling success, the addition of 8 (6.7 net) producing Montney/Doig horizontal natural gas wells since June 30, 2011 and other exploration and development drilling success, Birchcliff expects to add material reserves in all categories at year end 2011. 2011 THIRD QUARTER RESULTS Production Based on estimates from field reports, current production is approximately 19,400 boe/day. Third quarter production averaged 17,648 boe/day, (75% natural gas and 25% light oil and natural gas liquids) up 35% from 13,109 boe/day in the third quarter of 2010. This significant increase in production volumes over the past year was primarily a result of Birchcliff's Montney/Doig horizontal natural gas drilling program and the completion of Phases I and II of the PCS Gas Plant in the Pouce Coupe area. We also achieved drilling successes in both the Worsley area and our East area. As a result of severely abnormal weather conditions, including a significant amount of rain and flooding, and frequent unexpected third party processing outages, Birchcliff expects its forecast yearly average production to be between 18,100 and 18,200 boe/day; slightly below its previous guidance of 18,500 boe/day. Cash Flow and Earnings Cash flow was $33.8 million or $0.27 per share for the third quarter of 2011, as compared to $22.8 million or $0.18 per share in the third quarter of 2010. Net income during the third quarter was $11.4 million ($0.09 per share) as compared to $5.5 million ($0.04 per share) during the third quarter of 2010. Earnings were also ahead of the second quarter of 2011. We are very pleased that we continue to have significant earnings during a quarter of low natural gas prices. This is reflective of both the low finding cost nature of our asset base, as a result of our growth having been through the drill bit, and the low operating costs per boe we achieve from our owned and operated facilities. Capital Expenditures and Drilling Results During the third quarter of 2011, net capital spending aggregated $72 million. The specific breakdown of our capital expenditure program is contained in the Capital Expenditure section of our Management's Discussion and Analysis. During the third quarter of 2011, Birchcliff drilled 19 (15.4 net) wells, all of which were cased, for a success rate of 100%. These wells included 5 (4.9 net) Montney/Doig horizontal natural gas wells and 6 (6.0 net) Worsley horizontal light oil wells, 7 (3.5 net) Doe Creek light oil wells and one successful 100% working interest acid gas disposal well for the Phase III expansion of the PCS Gas Plant.Operating Costs During the quarter, a greater proportion of Birchcliff's natural gas production was processed at its 100% owned PCS Gas Plant, which resulted in a reduction in corporate operating costs per boe to $6.39. In addition, we expect to maintain our low operating costs per boe as we maximize our volume through-put at the PCS Gas Plant, assuming we see improved run times at the third party facilities that process some of our gas production. For further details regarding our operating costs, please refer to the disclosures under the heading "PCS Gas Plant Operating Netback" in Management's Discussion and Analysis set forth below. Indebtedness At September 30, 2011, the amount outstanding under Birchcliff's bank credit facilities was approximately $359.3 million. Birchcliff's working capital deficiency as at September 30, 2011 was $27.0 million, for total debt of $386.3 million. Under our banking arrangements, the working capital deficiency does not reduce the amount Birchcliff can draw under its credit facilities. In May 2011, Birchcliff's bank syndicate increased Birchcliff's total credit facilities to an aggregate limit of $520 million. The facilities include a $450 million revolving credit facility with a two year term out feature. If the credit facilities are not renewed at their annual renewal date, they convert to a two year term loan repayable at maturity. The second facility is a $70 million non-revolving 5 year term credit facility. This credit facility will be used primarily to fund the construction of the Phase lll expansion of the PCS Gas Plant. We anticipate significant reserve additions for the 2011 year and therefore we expect that Birchcliff's credit facilities will be further materially increased at the next annual review in May 2012.Land Birchcliff continues to have a substantial undeveloped land base in the Peace River Arch, which at September 30, 2011 was comprised of 528,703 (489,938 net) acres. Birchcliff's average working interest in its undeveloped land base is approximately 93%, which reflects our long standing strategy of acquiring high working interest undeveloped land proximate to our operated high working interest production base. OPERATIONS UPDATE Currently, Birchcliff has 4 rigs working of which 2 rigs are in the Pouce Coupe area drilling horizontal Montney/Doig natural gas wells, 1 rig is active on our Worsley Light Oil Resource Play drilling Charlie Lake light oil wells, and 1 rig is drilling an exploration well at Sinclair. To date in 2011, Birchcliff has drilled 44 (36.7 net) wells.Montney/Doig Natural Gas Resource Play Update In the third quarter of 2011, Birchcliff's activities on the Montney/Doig Natural Gas Resource Play included the drilling of 5 (4.9 net) horizontal natural gas wells utilizing multi-stage fracture stimulation techniques. Of these wells 1 (1.0 net) well was an exploration well that was successful in finding a new pool, the other 4 (3.9 net) wells were development wells. Rapid advancements in horizontal drilling and multi-stage fracture stimulation technology have resulted in significant improvements in production and reserve capture for many different plays throughout North America. Birchcliff believes that the Montney/Doig Natural Gas Resource Play continues to experience some of the best results of the application of this technology due to its unique reservoir characteristics. Birchcliff classifies the Montney/Doig Natural Gas Resource Play as a hybrid resource play that significantly benefits from having approximately 300 meters (1,000 feet) of gas saturated rock that has both tight silt and sand reservoir rock inter-layered with shale gas source rock. The horizontal wells are designed to maximize the contributions from this complex reservoir. As our knowledge grows with respect to both the reservoir characteristics and the operational technology of these resources, we expect our results to continue to improve. Birchcliff's strategy for the Montney/Doig Natural Gas Resource Play has evolved into a full cycle, exploration, exploitation, development and production program. We continue to aggressively add to our undeveloped land inventory, we continue to build out our infrastructure, we are now drilling infill wells on 300 meter inter-well spacing. Further evaluation is being conducted to support down spacing to less than 300 meters, as has been done by other competitors on the play. At June 30, 2011, Birchcliff had a total of 550 (494.0 net) sections of land that it believes have potential for the Montney/Doig Resource Play of which proved and probable reserves have been attributed to 104.6 net sections, only 21% of the 494 net sections. Birchcliff's lands provide in excess of 1,900 net potential Montney/Doig horizontal natural gas drilling locations of which only 16% have been assigned proved plus probable reserves in the reserves evaluation dated September 23, 2011 which was prepared by AJM Deloitte ("AJM") as at June 30, 2011 (the "AJM Evaluation"). Of these locations only 66 (55.1 net) wells have been drilled to date. In the AJM Evaluation, AJM attributed Montney/Doig reserves to 43.8 net wells and 255.4 net future drilling locations. Birchcliff continues to explore to geographically and stratigraphically expand the Montney/Doig Natural Gas Resource Play. Of the wells drilled to date in 2011 on the play, 5 (5.0 net) horizontal wells were exploratory in nature and successfully found new pools and proved new lands. Birchcliff continues to expand its infrastructure to control the play and reduce operating costs per boe. This provides economic efficiencies as well as strategic control and reserve capture in the area.Mid Year Reserves Evaluation and Montney/Doig Resource Assessment During the third quarter Birchcliff received the following reports from AJM Deloitte: Reserves Evaluation dated September 23, 2011, which evaluated all of Birchcliff's reserves as at June 30, 2011; and Montney/Doig Resource Assessment dated September 30, 2011, which assessed the resources existing on Birchcliff's Montney/Doig lands as at June 30, 2011. Details of both of these Reports were disclosed in Birchcliff's Press Release dated October 3, 2011. (Press control + click on link to access.)Pouce Coupe South Gas Plant Update - Phase III and Phase IV ExpansionsBirchcliff is well underway in planning for construction of the Phase III expansion of the PCS Gas Plant. The engineering and design work is currently being completed and procurement of all major components is well underway. Contracts have been awarded for all major skid packages and shop fabrication has commenced. Field construction is planned to start in the spring of 2012. Phase III is scheduled to start-up by November 1, 2012. In order to continue to develop its large resource base, Birchcliff has commenced the internal process to obtain regulatory approval for a Phase IV expansion of the PCS Gas Plant which would increase the processing capacity from 120 mmcf per day to 240 mmcf per day.Worsley Light Oil Resource Play Update The Worsley Light Oil Resource Play has demonstrated consistent and prolific production performance. Successful expansion of the pool, water flood performance and the application of horizontal drilling and multi-stage fracture stimulation technology have all contributed to its continued reserve growth, production growth and high netbacks. To date in 2011, Birchcliff has drilled 14 (14.0 net) horizontal and 1 (1.0 net) vertical successful development oil well in the Worsley Light Oil Resource Play. Our 2011 drilling program to date has successfully delineated and extended the pool to the west and south, which increased our estimate of original oil in place. With this success, a sizeable number of follow up locations have been identified. The June 30, 2011 AJM Evaluation identified 112 proven plus probable drilling locations. The water flood response is meeting our expectations and we are committed to further expansion of the water flood area, particularly in the south east area of the pool. On the Worsley Light Oil Resource Play, both the original oil in place and the estimated recoverable reserves for the pool continues to grow from July 1, 2007, the date we originally acquired this property.New Resource Plays In Birchcliff's focus area of the Peace River Arch, numerous industry competitors have announced significant developments on a number of different resource plays. Throughout 2010 and continuing through 2011 there have been significant lands posted and acquired by industry in the Peace River Arch area and numerous new wells have been drilled and completed by competitors targeting these new resource plays. Birchcliff continues to spend significant time analyzing and evaluating various new resource plays in the Peace River Arch. Birchcliff recently disclosed its land positions that are prospective for the developing resource plays noted below.Nordegg Resource Play720 (616.4 net) sectionsBanff/Exshaw Resource Play661 (648.0 net) sectionsDuvernay Resource Play198 (196.4 net) sectionsAs is consistent with our corporate strategy, the majority of this land is in large contiguous blocks at 100% working interest. Some of these lands are also prospective for the Montney/Doig Natural Gas Resource Play or the Worsley Light Oil Resource Play. We are early in the development of these new resource plays; however, based on the high level of industry activity and our internal technical evaluation, we are optimistic about their potential ultimate value.BC LNG Export Co-Operative Birchcliff has recently become one of the Founding Members in the BC LNG Export Co-Operative which is involved with Douglas Channel Energy Partnership in the development of a small scale LNG export project in Kitimat, British Columbia (the "Project") with a planned start-up by early 2014. As a Founding Member of the Co-Operative, Birchcliff will be entitled to bid to supply feed gas for the Project on such terms as Birchcliff considers appropriate at the relevant time. Birchcliff has not undertaken and does not expect to undertake any financial obligations in respect of the Project, other than pursuant to gas supply contracts that may be entered into. The first phase of this Project is expected to need approximately 95 mmcf/day of feed gas and the volumes that may be supplied by Birchcliff will depend on whether Birchcliff's gas supply bids are sufficiently competitive to be accepted.Outlook Birchcliff believes that a public sale process is the appropriate course of action to attract a reasonable offer to purchase its shares. It is an open process that provides our staff, shareholders and stakeholders with full transparency. Birchcliff is enjoying record production, our reserve growth is exceptional and our current drilling programs provide further optimism that we can continue to meet our development goals. We have the unwavering support of Mr. Schulich, our largest shareholder. Birchcliff is well capitalized and has an excellent relationship with our Banking Syndicate. The Birchcliff executive team is a close knit group of professionals whose interests are aligned with our shareholders. Birchcliff's staff, our most important asset, is a motivated, highly trained group of professionals who strive to be the best in the industry. In short, if Birchcliff receives a reasonable bid, the resulting sale will create value for our shareholders. In the event the sale process is not successful, we are very well positioned to execute our business plan with exceptional enthusiasm and a very large and stable asset base. A. Jeffery Tonken, President and Chief Executive OfficerFINANCIAL AND OPERATIONAL HIGHLIGHTS Three months ended September 30, 2011Three months ended September 30, 2010Nine months ended September 30, 2011Nine months ended September 30, 2010OPERATINGAverage daily productionLight oil – barrels4,0502,9733,7963,017Natural gas – thousands of cubic feet78,99657,92479,42051,238NGLs – barrels432483539411Total – barrels of oil equivalent (6:1)17,64813,10917,57111,968Average sales price ($ Canadian)Light oil – per barrel86.4076.4490.6877.54Natural gas – per thousand cubic feet3.923.794.034.34NGLs – per barrel84.2568.3087.4571.29Total – barrels of oil equivalent (6:1)39.4236.6040.4740.60Undeveloped landGross (acres)528,703480,917528,703480,917Net (acres)489,938437,169489,938437,169NETBACK AND COST($ per barrel of oil equivalent at 6:1)Petroleum and natural gas revenue39.4636.5940.5140.68Royalty expense(4.19)(2.95)(4.55)(3.84)Operating expense(1)(6.39)(7.33)(6.70)(7.95)Transportation and marketing expense(2.71)(2.60)(2.63)(2.60)Netback(1)26.1723.7126.6326.29General & administrative expense, net(1)(2.97)(2.00)(2.91)(2.75)Interest expense(2.36)(2.85)(2.79)(2.92)Cash Flow Netback(1)20.8418.8620.9420.62Stock-based compensation expense, net(1)(1.46)(0.93)(1.40)(1.98)Depletion and depreciation expense(1)(10.97)(10.68)(10.41)(10.82)Accretion expense(1)(0.27)(0.30)(0.28)(0.32)Amortization of deferred financing fees(0.12)(0.21)(0.14)(0.43)Gain on sale of assets(1)1.88-0.454.75Deferred income tax expense(1)(2.86)(2.15)(2.67)(3.64)Net Income(1)7.034.596.498.18FINANCIALPetroleum and natural gas revenue ($000)64,06944,125194,326132,906Cash flow ($000)(1)(2)33,84422,750100,42667,375Per share – basic ($)(1)(2)0.270.180.800.54Per share – diluted ($)(1)(2)0.260.180.770.52Net income ($000)(1)11,4115,53331,12126,732Per share – basic ($)(1)0.090.040.250.21Per share – diluted ($)(1)0.090.040.240.21Common shares outstandingEnd of period – basic126,679,577124,912,134126,679,577124,912,134End of period – diluted140,149,250137,364,386140,149,250137,364,386Weighted average shares for period – basic126,630,446124,872,806126,131,596124,506,757Weighted average shares for period – diluted(1)131,374,723128,338,449131,000,989128,432,887Capital expenditures, net ($000)(1)71,97892,520156,457169,194Working capital deficiency ($000)26,99038,74926,99038,749Non-revolving term credit facilities ($000)68,811-68,811-Revolving credit facilities ($000)290,495281,172290,495281,172Total debt ($000)386,296319,921386,296319,921(1) Prior period amounts restated to comply with the requirements of International Financial Reporting Standards. (2) Cash flow and cash flow per share amounts represent cash provided by operating activities as per the Condensed Statements of Cash Flows before the effects of changes in non-cash working capital and decommissioning expenditures related to operating activities.ADVISORIES AdvisoriesUnaudited Numbers: The Corporation's annual audit of its 2011 financial statements is not yet complete and accordingly all 2011 financial amounts referred to in this Press Release are management's best estimates, which have not yet been audited.Non-IFRS Measures: This Press Release uses "cash flow" and "netback", which do not have standardized meanings prescribed by IFRS and therefore may not be comparable to measure by other companies where similar terminology is used. Boe Conversions: Barrels of oil equivalent ("boe") amounts have been calculated by converting natural gas to oil in the ratio of six thousand cubic feet (6 mcf) to one barrel of oil equivalent (1 boe). Boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Forward Looking Information: This Press Release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. Information relating to "reserves" or "resources" is forward-looking as it involves the implied assessment, based on certain estimates and assumptions, that the reserves and resources exist in the quantities estimated and that they will be commercially viable to produce in the future. Words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words that convey certain events or conditions "may" or "will" occur are intended to identify forward-looking information. In particular, this Press Release contains forward-looking information relating to the Corporations' intention to expand processing facilities and drill and complete future wells; estimates of recoverable reserves and resource volumes; planned production increases; an estimate of potential Montney/Doig horizontal well locations; and an estimate of potential Worsley light oil drilling locations. The forward-looking information is based upon assumptions as to future commodity prices, currency exchange rates, inflation rates, well production rates, well drainage areas, success rates for future drilling and availability of labour and services. With respect to estimates of reserves and resource volumes, a key assumption is the validity of the data used by AJM Deloitte in their independent reserves evaluation and resource assessment. With respect to estimates of numbers of future wells to be drilled a key assumption is that geological and other technical interpretations performed by the Corporation's technical staff, which indicate that commercially economic reserves can be recovered from the Corporation's lands as a result of drilling such future wells, are valid. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Although the Corporation believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated. Forward-looking information necessarily involves both known and unknown risks associated with oil and gas exploration, production, transportation and marketing such as uncertainty of geological and technical data, imprecision of reserves and resources estimates, operational risks, environmental risks, loss of market demand, general economic conditions affecting ability to access sufficient capital, changes in governmental regulation of the oil and gas industry and competition from others for scarce resources. The foregoing list of risk factors is not exhaustive. Additional information on these and other risk factors that could affect operations or financial results are included in the Corporation's most recent Annual Information Form and in other reports filed with Canadian securities regulatory authorities. Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this Press Release to conform such information to actual results or to changes in the Corporation's plans or expectations, except as otherwise required by applicable securities laws.Birchcliff is a publicly traded company that trades on the TSX Exchange under the symbol "BIR".This press release is not for distribution to United States Newswire Services or for dissemination in the United States.FOR FURTHER INFORMATION PLEASE CONTACT: Jeff TonkenBirchcliff Energy Ltd.President & Chief Executive Officer(403) 261-6401(403) 261-6424 (FAX)ORBruno GeremiaBirchcliff Energy Ltd.Vice President & Chief Financial Officer(403) 261-6401(403) 261-6424 (FAX)ORJim SurbeyBirchcliff Energy Ltd.Vice President, Corporate Development(403) 261-6401(403) 261-6424 (FAX)The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.