Birchcliff Energy Ltd.

Birchcliff Energy Ltd.
Scout Capital Corp.

Scout Capital Corp.

January 19, 2005 15:23 ET

Birchcliff Energy Ltd. Announces Completion of Plan of Arrangement and Commencement of Trading on the Canadian Venture Exchange


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BIRCHCLIFF ENERGY LTD.



AND SCOUT CAPITAL CORP.

TSX VENTURE SYMBOL: SKT

JANUARY 19, 2005 - 15:23 ET

Birchcliff Energy Ltd. Announces Completion of Plan of
Arrangement and Commencement of Trading on the
Canadian Venture Exchange

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2005) - Jeff Tonken, President
of Birchcliff Energy Ltd. ("Birchcliff"), is pleased to announce that
Birchcliff has completed it's previously announced Plan of Arrangement
with Scout Capital Corp. (TSX VENTURE:SKT).

Birchcliff Energy Ltd. expects it's shares will commence trading on the
TSX Venture Exchange, Thursday, January 20th, under the symbol "BIR".

ASSETS & CAPITALIZATION

After completion of the Plan of Arrangement and costs of the
transaction, Birchcliff has approximately $57 million, no debt and 20.2
million shares outstanding. Directors, management and employees own
approximately 24% of the shares of Birchcliff having invested
approximately $15 million.

Birchcliff has today granted 1,665,000 options to directors, management
and employees exercisable at $3 per share for a period of 5 years.

CURRENT OPERATIONS

Birchcliff is pleased to announce that it has spudded its first
exploration well with a 30% working interest in the Peace River Arch
area of Alberta. Birchcliff estimates its net costs will be
approximately $770,000 to drill, case, and complete the well.

MANAGEMENT

The management of Birchcliff consists of the following individuals: A.
Jeffery Tonken - President & Chief Executive Officer, Myles Bosman -
Vice President Exploration & Chief Operating Officer, Richard G. Hoath -
Vice President Engineering, Bruno P. Geremia - Vice President & Chief
Financial Officer, and James W. Surbey - Vice President Corporate
Development & Corporate Secretary.

In addition to management's expertise, Birchcliff has a complete
complement of oil and gas professionals including two senior geologists
- Keith Ingstrup and Keith Mychaluk, land manager - Bob Grisack, manager
reservoir engineering - Marvin Axani, operations supervisor - Mark
Stephen finance manager - Kristi Slemko, geological technician - Corey
Jerome and contract geophysicist - Jeff Sluggett.

DIRECTORS

The directors of Birchcliff consist of Mr. Larry A. Shaw, Mr. Gordon W.
Cameron, Mr. Werner A. Siemens, and Mr. A. Jeffery Tonken.

BUSINESS PLAN

Birchcliff has been and intends to actively evaluate acquisition
opportunities for light oil and natural gas with a view to purchasing
assets in Birchcliff's areas of interest. Further, Birchcliff intends at
a grass roots level to actively explore for and develop light oil and
natural gas in Birchcliff's areas of interest in Western Canada.

This press release is not for distribution to United States Newswire
Services or for dissemination in the United States.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Birchcliff Energy Ltd.
    A. Jeffery Tonken
    President & Chief Executive Officer
    (403) 261-6410
    or
    Birchcliff Energy Ltd.
    Jim Surbey
    Vice President, Corporate Development
    (403) 261-6416
    The TSX Venture Exchange has not approved or disapproved the contents of
    this news release.