Berens Energy Ltd. Releases December 31, 2008 Reserve Information and Operating Update



    
    /NOT FOR DISTRIBUTION INTO THE UNITED STATES OF AMERICA OR TO U.S.
    NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

    Symbol: BEN - TSX
    

    CALGARY, Feb. 26 /CNW/ - Berens Energy Ltd. ("Berens") is pleased to
report strong year-over-year reserve growth and finding and development costs
from our 2008 drilling program. Highlights of the year end reserves are as
follows:

    
    -   Proved and probable reserves grew 22 percent to 11.0 million barrels
        with growth coming entirely through the drill bit.

    -   On a per share basis, proved plus probable reserves increased from
        96.8 boe per 1,000 shares to 117.3 boe per 1000 shares, also a
        22 percent increase as capital spending was equal to cash flow for
        the year and a nominal number of shares were issued in 2008.

    -   2008 production replacement was 230 percent with new reserves on a
        proved plus probable basis.

    -   Finding and development costs for the year were $10.52 per boe
        including future development capital on a proved plus probable basis,
        an 18 percent improvement compared to $12.85 per boe in 2007. On a
        three year rolling average basis proved plus probable finding and
        development costs were $14.54 per boe.

    -   Total capital, including land and future development capital and
        including reserve revisions generates an all in finding and
        development cost of $12.09 per boe for the year and results in a 2008
        corporate recycle ratio of 2.4 times.

    RESERVES
    --------
    
    Berens' oil and gas reserves were independently evaluated by GLJ
Petroleum Consultants ("GLJ"). The evaluation was completed using the reserves
definitions in the Canadian Oil and Gas Evaluation Handbook and the Canadian
Securities Administrators National Instrument 51-101 ("NI 51-101"). The tables
below summarize Berens' working interest reserves on a gross basis (before
deduction for royalties) as at December 31, 2008 using forecast prices and
costs based on the GLJ January 1, 2009 price forecast.

    
                     SUMMARY OF OIL AND GAS RESERVES(1)

    -------------------------------------------------------------------------
    WORKING INTEREST              OIL and                    NATURAL
     RESERVES                     LIQUIDS                      GAS
    -------------------------------------------------------------------------
                           2008     2007   Percent    2008     2007   Percent
    RESERVES CATEGORY     (Mbbl)   (Mbbl)  Change    (MMcf)   (MMcf)  Change
    -------------------------------------------------------------------------

    PROVED
      Developed
       Producing          1,240    1,050     +18%   25,536   21,855     +17%
      Developed
       Non-Producing        204       82    +149%    2,706    1,440     +88%
      Undeveloped           244      198     +23%    5,794    4,746     +22%
    -------------------------------------------------------------------------
    TOTAL PROVED          1,688    1,330     +27%   34,036   28,041     +21%
    -------------------------------------------------------------------------
    PROBABLE                834      665     +25%   16,667   14,085     +18%
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS
     PROBABLE             2,522    1,995     +26%   50,703   42,126     +20%
    -------------------------------------------------------------------------


             -------------------------------------------------------
             WORKING INTEREST RESERVES                BOE
             -------------------------------------------------------
                                             2008     2007   Percent
             RESERVES CATEGORY              (Mbbl)   (Mbbl)  Change
             -------------------------------------------------------

             PROVED
               Developed Producing          5,496    4,693     +17%
               Developed Non-Producing        655      322    +103%
               Undeveloped                  1,210      989     +22%
             -------------------------------------------------------
             TOTAL PROVED                   7,361    6,003     +23%
             -------------------------------------------------------
             PROBABLE                       3,611    3,013     +20%
             -------------------------------------------------------
             TOTAL PROVED PLUS PROBABLE    10,972    9,016     +22%
             -------------------------------------------------------


    -------------------------------------------------------------------------
    WORKING INTEREST           BEFORE TAX 10%             BEFORE TAX 15%
     RESERVES                 PRESENT VALUE(1)           PRESENT VALUE(1)
    -------------------------------------------------------------------------
                          2008     2007    Percent   2008     2007    Percent
    RESERVES CATEGORY   ($000's) ($000's)  Change  ($000's) ($000's)  Change
    -------------------------------------------------------------------------

    PROVED
      Developed
       Producing        110,683   86,962     +27%   95,743   77,205     +24%
      Developed
       Non-Producing     12,349    4,842    +155%   10,217    3,971    +157%
      Undeveloped        11,875    6,640     +79%    8,254    4,598     +80%
    -------------------------------------------------------------------------
    TOTAL PROVED        134,907   98,444     +37%  114,214   85,774     +33%
    -------------------------------------------------------------------------
    PROBABLE             46,484   34,215     +36%   33,901   25,911     +31%
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS
     PROBABLE           181,391  132,659     +37%  148,115  111,685     +33%
    -------------------------------------------------------------------------
    (1) It should not be assumed that the present values of estimated future
        net cash flows shown above are representative of the fair market
        value of the reserves. There is no assurance that such price and cost
        assumptions will be attained and variances could be material. The
        recovery and reserves estimates of crude oil, NGL and natural gas
        reserves provided herein are estimates only and there is no guarantee
        that the estimated reserves will be recovered. Actual crude oil,
        natural gas and NGL reserves may be greater than or less than the
        estimates provided herein.


    A summary of the GLJ January 1st, 2009 price forecast assumptions utilized
in the analyses is as follows:

                      Edmonton
                       Crude                         FOB
                      Oil Par                       Field
              WTI      Price    Hardisty  AECO-C    Gate     Infla-
            Cushing  40 degree   Heavy     Gas    (propane/   tion   Exchange
           Oklahoma     API       Oil     Price    butane)    rate     rate
             ($US/    ($Cdn/    ($Cdn/    ($Cdn/    ($Cdn/   % per    ($US/
    Year      bbl)     bbl)      bbl)     MMbtu)     bbl)     year     Cdn)
           --------- --------- --------- -------- --------- ------- ---------

    Forecast
    2009      57.50     68.61     43.10     7.58     47.68     2.0     0.825
    2010      68.00     78.94     49.76     7.94     55.65     2.0     0.850
    2011      74.00     83.54     54.35     8.34     58.89     2.0     0.875
    2012      85.00     90.92     59.23     8.70     64.10     2.0     0.925
    2013      92.01     95.91     62.59     8.95     67.61     2.0     0.950


    CAPITAL EFFICIENCY
    ------------------
    The following table reconciles the reserve additions from capital
spending, acquisitions, dispositions and revisions to opening estimates.


                              RECONCILIATION OF
                           COMPANY GROSS RESERVES
                         BY BARREL OF OIL EQUIVALENT
                ---------------------------------------------
                                                 BOE
                ---------------------------------------------
                                                     Proved
                                                      Plus
                                          Proved    Probable
                      FACTORS             (Mboe)     (Mboe)
                ---------------------------------------------

                December 31, 2007          6,003       9,016

                Discoveries                  166         254
                Extensions                 2,314       3,387
                Technical revisions          367        (204)
                Acquisitions                  30          41
                Dispositions                  (9)        (12)
                Economic factors              31          31
                Production(1)             (1,541)     (1,541)
                ---------------------------------------------
                December 31, 2008          7,361      10,972
                ---------------------------------------------
    

    Capital spending (unaudited) in 2008 was $40.2 million including $3.3
million spent on land acquisitions. Proved plus probable finding and
development costs for 2008 excluding land acquisitions and including the
change in future development capital was $10.52 per boe on a proved plus
probable basis and $15.65 per boe on a proved only basis. On a total capital
basis, including land acquisitions and technical reserve revisions, proved
plus probable finding and development costs were $12.09 per boe in 2008. This
results in a corporate recycle ratio for 2008 of 2.4 times. The table below
provides detail on finding and development costs on a three year annual and
cumulative basis to December 31, 2008.

    
    -------------------------------------------------------------------------
                                        2008(*)     2007      2006     Three
                                                                        Year
                                                                      Totals
    -------------------------------------------------------------------------
    Total capital for seismic,
     exploration and development
     (excluding land capital) ($000's)  36,935    31,059    53,101   121,095
    -------------------------------------------------------------------------
    Future development capital -
     proved ($000's)                    17,309    15,112    12,633    16,069
    -------------------------------------------------------------------------
    Future development capital -
     proved plus probable ($000's)      22,863    21,187    15,413    21,483
    -------------------------------------------------------------------------
    Reserve extensions, discoveries
     and dispositions - proved (Mboe)    2,501     1,777     2,222     6,500
    -------------------------------------------------------------------------
    Reserve extensions, discoveries
     and dispositions - proved plus
     probable (Mboe)                     3,670     2,868     3,271     9,809
    -------------------------------------------------------------------------
    Finding and development costs -
     proved (per boe)                   $15.65    $18.89    $29.12    $21.10
    -------------------------------------------------------------------------
    Finding and development costs -
     proved plus probable (per boe)     $10.52    $12.85    $20.59    $14.54
    -------------------------------------------------------------------------
    (*) 2008 capital unaudited
    

    All calculations converting natural gas to crude oil equivalent have been
made using a ratio of six thousand cubic feet ("mcf") of natural gas to one
barrel of crude oil 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.

    
    OPERATIONS UPDATE
    -----------------
    
    Drilling success continues into early 2009 as the 2008 program has been
followed up by three more successful wells (1.5 net wells), two horizontals in
Pembina and one well in Deep Basin. The first 2009 horizontal well (0.6 net)
had test rates in excess of 15 million cubic feet per day and was brought on
stream in mid February at restricted rates of approximately 4 million cubic
feet per day. The second 2009 horizontal is cased pending completion by the
operator. The successful Deep Basin well is expected to be on stream by the
end of February at 0.5 million cubic feet per day. One additional horizontal
was unsuccessful due to mechanical difficulties. An additional vertical well
is planned in Pembina prior to break-up for a total of five wells (2.8 net) in
the first quarter. A capital program of $40 million, to be funded from cash
flow is budgeted for 2009 based on AECO natural gas prices of $7.00 per mcf.
Spending in the first quarter is expected to be under $12 MM and if weak
natural gas prices continue, management will review the capital program at the
end of break-up with the ongoing objective of spending within cash flow.
Berens continues to selectively add to its land position and has already added
12 (8.5 net) sections in the general Pembina area so far in 2009.

    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: Dell P. Chapman, V.P. Finance & CFO, Ph: (403)
303-3267; Daniel F. Botterill, President & Chief Executive Officer, Ph: (403)
303-3262

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