Burmis Energy Inc.

Burmis Energy Inc.

January 15, 2008 08:00 ET

Burmis Energy Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 15, 2008) - Burmis Energy Inc. ("Burmis" or the "Company") (TSX:BME) is pleased to provide an update of its current operations.


During the fourth quarter of 2007, Burmis added production from natural gas wells located in the Brazeau, Brewster, Ferrier North and Whitecourt areas of west central Alberta. Production from these wells enabled the Company to exceed its targeted 2007 exit production rate and has boosted current production to approximately 3,600 barrels of oil equivalent per day based on field estimates.


Ferrier North

At Ferrier North, Burmis has a 100 percent working interest in four sections of land. During October, the Company brought a well located at 14-18-44-10W5 on production at a stabilized rate of 1.5 million cubic feet per day plus 100 barrels per day of associated natural gas liquids.

In December, Burmis re-completed a well located at 6-19-44-10W5. Following stimulation and clean-up of the well, test rates of 4.4 million cubic feet per day plus associated condensate production of 380 barrels per day were observed. This well is currently producing at a restricted rate of approximately 2.4 million cubic feet per day with approximately 200 barrels per day of associated liquids.

Burmis has licensed a third well at Ferrier North, located at 5-20-44-10W5. A fourth location has been mapped and is currently in the process of being licensed. Burmis also plans to pursue down-spacing opportunities on this property during 2008 to optimize its development.


At Brewster, Burmis has assembled interests in seventeen sections of land with an average working interest of 41 percent. In December 2007, the operator of the property completed an expansion of the compressor station, adding a second compressor and increasing the capacity of the facility to approximately 20 million cubic feet per day. As a result, Burmis' second natural gas well (0.4 net) on this property commenced production in December. The Company now has two gross (0.8 net) natural gas wells producing at a combined net rate of approximately 3.0 million cubic feet per day of natural gas plus 75 barrels per day of associated natural gas liquids.

In December 2007, Burmis drilled and cased a 100 percent working interest location at Brewster offsetting its first two wells. Completion operations on this well are expected to commence this month. An additional six gross (2.1 net) locations have been identified for drilling in 2008 surrounding the initial discovery wells. The first well in this 2008 program (40 percent working interest) is currently drilling. In addition, five gross (2.0 net) locations have been identified to the south and east for future drilling on this property.

During the fourth quarter of 2007, Burmis acquired 3-D seismic over the majority of its lands in the area to further evaluate future locations prior to drilling. This data is currently being evaluated.


In late October, Burmis successfully brought the 1-26-46-13W5 Nisku natural gas well (66 percent working interest before payout) on production. Estimated net production, after removal of acid gas components, is approximately 1.4 million cubic feet per day plus 50 barrels per day of associated natural gas liquids.

During December 2007, Burmis participated in drilling an exploratory well (25 percent working interest) in the Brazeau area. This well has been cased and is awaiting completion. In addition, a well located at 15-31-46-13W5 (33 percent working interest) was tied in and is producing at a gross rate of approximately 0.5 million cubic feet per day.


At Whitecourt, Burmis tied in a 100 percent working interest well located at 14-19-58-11W5 in early October 2007. The well is currently flowing at a rate of approximately 1.0 million cubic feet per day plus associated liquids.

Burmis is a growing junior Canadian exploration, development and production company focused in west central Alberta. The common shares of Burmis trade on the Toronto Stock Exchange under the symbol "BME".

ADVISORY - Certain information regarding Burmis set forth in this document including management's assessment of the Company's future plans and operations may constitute forward-looking statements under applicable securities law. By their nature, forward-looking statements necessarily involve risks associated with oil and gas exploration, production, marketing, and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of forward-looking information and statements, although considered reasonable at the time may prove to be imprecise. As such, undue reliance should not be placed on forward-looking statements. Burmis' actual results and performance could differ materially from those expressed in or implied by those forward-looking statements. Accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will occur, or if they do occur, what benefit Burmis will derive therefrom.

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