CALGARY, Aug. 22, 2012 /CNW/ - Birch Lake Energy Inc. ("Birch Lake") (TSXV: BLK) is pleased to report the filing of its unaudited financial statements and related management's discussion and analysis for the period ended June 30, 2012 on the SEDAR website at www.sedar.com. The Company also provides the following operational update.
Lochend AB, Cardium
At the Company's Lochend Cardium property, the operator is continuing in its efforts to acquire drilling licenses for the initial wells on the lands. On two of the four license applications currently pending with the ERCB, surface leases have been acquired from the surface land owners and are drill-ready upon receipt of a license from the ERCB.
We continue to be frustrated with the lack of progress in getting these licenses but recent high-level, direct communication with ERCB indicates that they will reach a decision soon. In the meantime, adjacent Crown lands have been posted for September sale date. We would expect a resolution of this issue prior to that time.
Birch Lake holds an interest in 12.5 gross sections (4.7 net) on the trend, which have a potential 50 gross drilling locations (19 net) on 160 acre spacing. Public information from 4-12-26-4, within 1.5 miles and immediately on-trend with these lands, has a reported IP 60 of 308 boepd (225bopd and 500mcfd) and an IP 90 of 286boepd (193bopd and 559 mcfd). These numbers are approximate as producing hours are not given and it was assumed that the well has produced for the complete months including the first.
Halkirk AB, Viking
In the Halkirk area, horizontal drilling of the Viking light oil resource continues in the immediate area of Birch Lake's lands. At this time, a total of more than 25 horizontal wells have been drilled or are drilling or licensed. As mentioned in previous reports, the Company is monitoring production results as they become available. To date, results are mixed, with current rates in the range of 10 to 40 bopd. It appears that drilling is now concentrating on a more specific area and that a "sweet spot' may have been defined where a couple of wells appear to have stabilized at about 40 bopd over 60 to 90 days. Birch Lake has an average 93% operated interest in 5.5 sections in this area, 3.5 of which are on trend between this apparent sweet spot and the Cutpick Resources Ltd properties which recently sold for in excess of $70,000 per flowing barrel per day. We will continue to closely monitor this activity and learn as much as possible before committing funds. We have also had expressions of interest from third parties with a view to farming in on these lands, but a formal agreement has not been reached.
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, such as the review of strategic alternatives and establishing a portfolio base and developing a new web-site 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 2 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 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