Berens Energy Ltd.

November 27, 2009 16:30 ET

Berens Energy Provides Update on Cardium Horizontal Wells

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2009) - Berens Energy Ltd. ("Berens" or the "Company") (TSX:BEN) is pleased to announce initial test results from its 15-21-50-12 W5M Pembina Cardium horizontal oil well (Berens 60% working interest). The 15-21 well is the second Cardium horizontal well operated by Berens. The well was drilled to a horizontal length of 915 metres and was successfully completed with a six stage frac treatment. Test results for the well were 1,250 bbl/day of oil at the end of a 3 day test period. The well will be placed on production in early December, 2009.

Berens' first horizontal oil well at 01-14-48-11W5M (Berens 50% working interest) was placed on production November 12th, 2009. The well is producing on pump jack at a stabilized production rate of 220 boepd. It should be noted that the well is restricted as the tubing and pump capacity is designed for the longer term expected production rate of the well and as a result the well is currently only drawn down by 15%.

As a result of the success of these first two wells, Berens has added a third Pembina Cardium horizontal oil well (60% working interest) at 01-14-49-12 W5M which is expected spud on December 1. This well is in addition to the original four wells planned for the first quarter of 2010. Berens also plans to drill a horizontal Notikewin well (60% working interest) in December in addition to its already planned vertical Notikewin well (50% working interest). Berens recently acquired two sections (100% working interest) of Cardium rights adjacent to its first 01-14 well so Berens now has a total of 70 gross sections (40 net) of Pembina Cardium rights on the west flank of the existing Pembina Cardium oil field. As previously announced, Berens' estimated drilling inventory for its lands is 170 wells (100 net). Berens is encouraged by the above production and test results which continue to support its view of the significant potential for this oil resource play on the Company's lands.

Berens Energy Ltd is a junior oil and gas company currently trading on the Toronto Stock Exchange. The company currently produces and explores for oil and gas in the Western Canadian Basin with its primary growth areas focused in the Pembina region. The company's strategy is to focus on profitable growth through a strategic combination of investments in exploration, development and acquisitions in western Canada.

All calculations converting natural gas to crude oil equivalent have been made using a ratio of six thousand cubic feet (six "mcf") of natural gas to one barrel of crude 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.

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. This cautionary statement expressly qualifies the forward-looking statements contained in this press release.

Contact Information

  • Berens Energy Ltd.
    Dan Botterill
    Chief Executive Officer
    (403) 303-3262
    Berens Energy Ltd.
    Dell P. Chapman
    Chief Financial Officer
    (403) 303-3267