CALGARY, March 26, 2013 /CNW/ - Birch Lake Energy Inc. ("Birch Lake" or the "Company") (TSXV: BLK) announced today that Bernum Petroleum Ltd. has filed a
statement of claim against Birch Lake regarding the Company's Lochend
Assets, being the non-operated working interest of 40% in certain
petroleum and natural gas rights underlying 7,760 gross acres (2,718
net) in the Lochend-Bearspaw area of Alberta. As set out in the court
documents, Bernum is claiming that Birch Lake is in default under the
related joint operating agreement and is seeking a judgement in the
amount of $1.532 million, plus interest in the amount of $11,365.
Bernum is also seeking court approval for the sale of Birch Lake's
working interest in the Lochend Assets.
The Company has taken immediate steps to vigorously defend this claim
and preserve its rights in the joint venture assets including a
detailed review of the completion operations on the initial well which
led to the apparent collapse of the production casing string during the
frac operation and the resulting loss of more than half the productive
well bore. The Corporation is also conducting a detailed review of the
drilling operations of the second well during which intermediate
casing was not able to be successfully run to depth drilled,
resulting in drilling difficulties during the horizontal section and
the eventual loss of the horizontal section after nearly reaching total
depth. Financial constraints prevented BLK from participating in a
re-drill of the horizontal leg and forfeiture of the one-section lease.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Birch Lake Capital Inc.
For further information:
Birch Lake Energy Inc.
William H. Petrie
President and Chief Executive Officer