Berens Energy Ltd. - Releases December 31, 2006 Reserve Information and Operating Update


    Symbol: BEN - TSX

    CALGARY, March 2 /CNW/ - Berens Energy Ltd. ("Berens") is pleased to
report information on its December 31, 2006 reserves evaluation and provide an
update on recent drilling.

    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"). Total
working interest proved plus probable reserves as at December 31, 2006 were
7,765,000 boe comprised of 1,487,000 barrels of oil and natural gas liquids
and 37,673 million cubic feet of natural gas. Total proved plus probable
reserves grew 224 percent from December 31, 2005 to December 31, 2006. On a
per share basis proved plus probable reserves grew 99 percent from
41.9 boe/1000 shares outstanding to 83.5 boe/1000 shares outstanding. Proved
plus probable reserves growth came equally from the exploration and
development program which added 3.3 million boe and the acquisition of Berland
Exploration Ltd. in January 2006 which added 3.3 million boe. The following
table summarizes Berens' working interest reserves on a gross basis (before
deduction for royalties) as at December 31, 2006 using forecast prices and
costs based on the GLJ January 1, 2007 price forecast.

                     SUMMARY OF OIL AND GAS RESERVES(1)

     RESERVES                OIL and LIQUIDS              NATURAL GAS
                           2006   2005  Percent     2006     2005    Percent
    RESERVES CATEGORY     (Mbbl) (Mbbl)  Change    (MMcf)   (MMcf)    Change
       Producing            743    180    +313%    18,770    6,819     +175%
       Non-Producing        148     25    +492%     4,266    1,460     +192%
      Undeveloped           100      0        -     3,381      474     +613%
    TOTAL PROVED            991    205    +383%    26,417    8,753     +202%
    PROBABLE                496     61    +713%    11,256    4,029     +179%
     PROBABLE             1,487    266    +459%    37,673   12,782     +195%

                                                              BEFORE TAX
      RESERVES CATEGORY          2006    2005  Percent      8%       10%
                                (Mbbl)  (Mbbl) Change    ($000's)  ($000's)

        Developed Producing     3,871   1,316   +194%     73,823    69,432
        Developed Non-Producing   858     269   +219%     14,977    14,013
        Undeveloped               664      79   +740%      4,626     3,731
      TOTAL PROVED              5,393   1,664   +224%     93,427    87,176
      PROBABLE                  2,372     732   +224%     35,174    31,074
       PROBABLE                 7,765   2,396   +224%    128,601   118,249

      (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.

    Oil and liquids represent 19 percent of December 31, 2006 reserves, up
from 11 percent at December 31, 2005 as the majority of the reserves added
through acquisition and drilling in 2006 have been liquids rich natural gas
reserves in Pembina and the Deep Basin. In addition to the value summarized
above, Berens has access to over 145,000 net undeveloped acres concentrated in
its four core areas.
    The following table reconciles the reserve additions from capital
spending, acquisitions and revisions to opening estimates.

                               RECONCILIATION OF
                          COMPANY INTEREST RESERVES BY
                            BARREL OF OIL EQUIVALENT
                        FACTORS           Proved   Probable
                                          (Mboe)    (Mboe)
                    December 31, 2005     1,664     2,396

                    Discoveries             390       499
                    Extensions            1,817     2,752
                    Infill drilling           -         -
                    Improved recovery        15        20
                    Technical revisions     200        21
                    Acquisitions          2,584     3,364
                    Dispositions            (23)      (33)
                    Production(1)        (1,254)   (1,254)
                    December 31, 2006     5,393     7,765
                    (1) Unaudited

    Berens estimates capital spending of $55.7 million in 2006 and aggregate
acquisition capital of $104.1 million ($102.7 million for the Berland
acquisition and $1.4 million for a minor acquisition). Net future capital as
at December 31, 2006 is estimated at $14.0 million.
    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.

    In the fourth quarter of 2006 Berens drilled five (4.7 net) successful
wells on six (5.3 net) attempts in Lanfine and went five (2.9 net) for five
(2.9 net) in Pembina for an overall success ratio of 93 percent. Two
additional successful small interest wells (0.1 net) were also drilled in
Pembina by partners in the fourth quarter of 2006. Overall for 2006 Berens had
39 (25.2 net) successful wells on 50 (29.3 net) wells drilled for an overall
net success rate of 86 percent. December 2006 average production was
3,556 boed with significant tie-in activity under way at year end.
    In January and February 2007 there have been three successful wells
(1.9 net) on three attempts in Pembina and two (0.8 net) for three in the Deep
Basin. In Marten Hills during January and February, 2007 seven wells (2.6 net)
have been drilled with four (1.5 net) being successful. So far in 2007 our
overall success rate is 70 percent. In the remainder of the first quarter of
2007 we expect to drill four more wells, two in Pembina and two in the Deep
Basin with the rest of our activity focused on pipelining and connecting our
fourth quarter 2006 and early 2007 wells prior to spring break-up. The Berens'
technical team continues to add future drilling locations on its extensive
undeveloped land position.
    Based on the fourth quarter of 2006 drilling success, the Company's
operating bank facility has recently been raised to $65 million and Berens
remains on track with its previously announced $45 million capital budget for
2007 and an estimated average production volume for 2007 of 4,200 boed.

    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; Robert D. Steele, Chief Executive Officer, Ph: (403) 303-3264

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