CALGARY, Aug. 27, 2012 /CNW/ - Birch Lake Energy Inc. ("Birch Lake" or "the Company") (TSX VENTURE: BLK) is pleased to announce that the ERCB has granted two drilling licenses for wells on Company lands along the Lochend Cardium trend in the Cochrane area of Alberta.
After an extended ERCB review process, the receipt of these licenses is a major step in the development of the Company's lands in this area. Birch Lake looks forward to working with the Operator and all stakeholders at Lochend to ensure our operations are conducted safely and with consideration for environmental issues and local residents.
Surface leases have been acquired for the two approved wells and the operator expects to drill and complete both wells consecutively in the fourth quarter of 2012. Public information from 4-12-26-4, within 2.5 kilometers and on-trend with the both of the Company's drilling locations, has a reported IP 60 of 308 boepd (225 bopd and 500 mcfd) and an IP 90 of 286 boepd (193 bopd 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.
Birch Lake holds an interest in 12.5 gross sections (4.7 net) on the Lochend Cardium trend, which have a potential 50 gross drilling locations (19 net) on 160 acre spacing.
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 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.
BOE's are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf : 1 bbl). BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
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 in the Western Canadian Sedimentary Basin. 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