Birch Lake Announces Proposed Debenture Offering and Fulfilment of 2012 Flow-Through Commitment

CALGARY, Dec. 24, 2012 /CNW/ - Birch Lake Energy Inc. ("Birch Lake" or the "Corporation) (TSXV: BLK) announces its intention to complete a non-brokered private placement offering of 12% secured subordinated convertible debentures in the principal amount of up to $2,000,000.  The debentures will bear interest at the rate of twelve percent (12%) per annum, calculated quarterly and payable semi-annually and will mature on the date that is one year from the date of issuance, subject to extension for an additional one year period at the option of the holder.  The debentures will be secured against the assets of the Corporation and will be convertible at the holder's option into common shares of the Corporation at a conversion price of $0.10 per common share at any time following the date that is one year from the date of issuance.  The Corporation can force conversion of the debenture into common shares if the Corporation's common shares trade at or above $0.15 per share for a minimum of 10 consecutive trading days (whether or not trading occurs on such days).

A finder's fee of up to 7% of the gross proceeds of the offering may be paid, on all or any portion of the funds raised pursuant to this offering.  The closing of the offering is expected to occur on or about January 2, 2013, and is subject to regulatory approval, including approval of the TSX Venture Exchange.  For further details on the offering, please contact the Corporation.  All securities issued in connection with the offering will be subject to a hold period of four months from the date of closing.  The net proceeds from the offering will be used to finance the Corporation's continuing capital program at Lochend and for general working capital purposes.

2012 Flow-Through Expenditure

The Corporation also advises that the two well drilling program at Lochend has satisfied its 2012 flow-through drilling obligations pursuant to the private placement financings completed in July and August 2011.

Forward Looking Statements:
This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Birch Lake's business and the  financing which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Birch Lake's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Birch Lake believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Birch Lake does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

About Birch Lake Energy Inc.

Birch Lake is a junior oil and gas company engaged in the exploration for and the acquisition, development and production of oil and natural gas reserves. The Corporation's common shares are listed to trade on the TSX Venture Exchange under the symbol "BLK".

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:

William H. Petrie
President and Chief Executive Officer
(403) 457-1944

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Birch Lake Capital Inc.

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