2008 Fourth Quarter Update and 2009 Corporate Guidance - Continued Production Growth



    
    Berens Energy Ltd.
    Symbol: BEN - TSX
    

    CALGARY, Jan. 9 /CNW/ - We are pleased to announce that estimated fourth
quarter 2008 production volume averaged over 4,700 boepd, exceeding forecast
fourth quarter production of 4,400 boepd. The fourth quarter 2008 results
represent a 24% volume increase over the fourth quarter of 2007 (on a gross
and per share basis) and a 14% increase over third quarter of 2008 (on a gross
and per share basis) while keeping debt levels flat. The production results
for the quarter were driven by strong third quarter drilling results. First
quarter 2009 production is expected to be 4,600 boepd with production gains
from ongoing drilling being offset by the Company's decision to curtail higher
production wells in Lanfine. This curtailment will preserve net asset value
under the new royalty framework which became effective January 1st, 2009.
    Drilling success continued in the fourth quarter of 2008 with 2
successful (1.4 net) vertical wells and our first successful horizontal well
(0.5 net) in Pembina. The horizontal well was placed on production in late
November at rates in excess of 8 mmcf/d and the well currently is producing
4.5 mmcf/d after being on stream for six weeks. We also participated in 2
unsuccessful wells during the quarter consisting of one (0.4 net) unsuccessful
completion in Deep Basin and one (0.4 net) horizontal well in Pembina where
the operator had to abandon operations due to mechanical difficulties. The
unsuccessful Pembina horizontal well will be re-drilled as part of our first
quarter 2009 program. The first quarter 2009 drilling program is already
underway, with 7 wells (3.5 net) planned for Pembina and 1 well (0.5 net)
scheduled for Deep Basin. In Pembina, 4 (2.1 net) of the wells planned for the
first quarter will be horizontal wells following the successful horizontal
well drilled in the fourth quarter of 2008.
    In 2009, Berens expects to spend $40 million to drill 30 wells (18 net)
which is equivalent to the capital spent in 2008 and is planned to be within
anticipated cash flow. The level of capital spending is based on natural gas
prices of $7.00/mmbtu AECO and Edmonton reference light oil prices averaging
$70.00/bbl Cdn. The $40 million capital program in 2009 is expected to deliver
an average 2009 production volume of 4,900 boepd which is a 17% increase over
the estimated average 2008 volume of 4,200 boepd.
    Consistent with its production increases, the company expects strong
reserve additions for 2008 based on low finding and development costs that are
anticipated to be consistent with the 2007 numbers. The company expects to
release its year-end reserves prior to the end of February, 2009.

    Berens Energy Ltd is a junior oil and gas company currently trading on
the Toronto Stock Exchange. The company currently produces and explores for
oil and gas in the Western Canadian Basin with its primary growth areas
focused in the Pembina and Deep Basin regions. The company's strategy is to
focus on profitable growth through a strategic combination of investments in
exploration, development and acquisitions in western Canada.
    All calculations converting natural gas to crude oil equivalent have been
made using a ratio of six thousand cubic feet (six "mcf") of natural gas to
one barrel of crude equivalent. Barrels of oil equivalent ("boe") may be
misleading, particularly if used in isolation. A boe conversion ratio of six
mcf of natural gas to one barrel of crude oil equivalent is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.

    Caution Regarding Forward Looking Information

    This press release contains forward looking information within the
meaning of applicable securities laws. Forward looking statements may include
estimates, plans, expectations, forecasts, guidance or other statements that
are not statements of fact. Forward looking information in this Press Release
includes, but is not limited to, statements with respect to capital
expenditures and related allocations, production volumes, production mix and
commodity prices.
    Forward-looking statements and information are based on current beliefs
as well as assumptions made by and information currently available to Berens
concerning anticipated financial performance, business prospects, strategies
and regulatory developments. Although management considers these assumptions
to be reasonable based on information currently available to it, they may
prove to be incorrect.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks that predictions,
forecasts, projections and other forward-looking statements will not be
achieved. We caution readers not to place undue reliance on these statements
as a number of important factors could cause the actual results to differ
materially from the beliefs, plans, objectives, expectations and
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to: crude oil and
natural gas price volatility, exchange rate and interest rate fluctuations,
availability of services and supplies, market competition, uncertainties in
the estimates of reserves, the timing of development expenditures, production
levels and the timing of achieving such levels, the Company's ability to
replace and increase oil and gas reserves, the sources and adequacy of funding
for capital investments, future growth prospects and current and expected
financial requirements of the Company, the cost of future abandonment and site
restoration, the Company's ability to enter into or renew leases, the
Company's ability to secure adequate product transportation, changes in
environmental and other regulations and general economic conditions.
    The forward-looking statements contained in this press release are made
as of the date of this press release, and Berens does not undertake any
obligation to up-date publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. This cautionary statement expressly qualifies the
forward-looking statements contained in this press release.

    %SEDAR: 00020114E




For further information:

For further information: Dan Botterill, Chief Executive Officer, (403)
303-3262; Dell P. Chapman, Chief Financial Officer, (403) 303-3267

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Berens Energy Ltd.

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