Berens Energy Ltd.

February 20, 2008 23:59 ET

Berens Energy Ltd. - Releases December 31, 2007 Reserve Information and Operating Update

CALGARY, ALBERTA--(Marketwire - Feb. 20, 2008) -

NOT FOR DISTRIBUTION INTO THE UNITED STATES OF AMERICA OR TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Berens Energy Ltd. ("Berens") is pleased to report strong year-over-year reserve growth per share of 16 percent and finding and development costs of $13.00 per boe based on unaudited capital spending estimates for the year ended December 31, 2007. The update on drilling in early 2008 is also positive.

RESERVES

Berens' oil and gas reserves were independently evaluated by GLJ Petroleum Consultants ("GLJ"). The evaluation was completed using the reserves definitions in the Canadian Oil and Gas Evaluation Handbook and the Canadian Securities Administrators National Instrument 51-101 ("NI 51-101"). Total working interest proved plus probable reserves as at December 31, 2007 were 9,016,000 boe an increase of 16 percent compared to proved plus probable reserves at December 31, 2006. On a per share basis proved plus probable reserves also grew 16 percent to 96.8 boe/1000 shares outstanding from 83.5 boe/1000 shares outstanding. Reserves growth came entirely from the successful 2007 exploration and development drilling program. The table below summarizes Berens' working interest reserves on a gross basis (before deduction for royalties) as at December 31, 2007 using forecast prices and costs based on the GLJ January 1, 2008 price forecast.



SUMMARY OF OIL AND GAS RESERVES(1)

-------------------------------------------------------------------------

OIL NATURAL

WORKING INTEREST RESERVES and LIQUIDS GAS

-------------------------------------------------------------------------

2007 2006 Percent 2007 2006 Percent

RESERVES CATEGORY (Mbbl) (Mbbl) Change (MMcf) (MMcf) Change

-------------------------------------------------------------------------

PROVED

Developed Producing 1,050 743 +41% 21,855 18,770 +16%

Developed Non-Producing 82 148 -44% 1,440 4,266 -66%

Undeveloped 198 100 +98% 4,746 3,381 +40%

-------------------------------------------------------------------------

TOTAL PROVED 1,330 991 +34% 28,041 26,417 +6%

-------------------------------------------------------------------------

PROBABLE 665 496 +34% 14,085 11,256 +25%

-------------------------------------------------------------------------

TOTAL PROVED PLUS PROBABLE 1,995 1,487 +34% 42,126 37,673 +12%

-------------------------------------------------------------------------

---------------------------------------------------

WORKING INTEREST RESERVES BOE

---------------------------------------------------

RESERVES CATEGORY 2007 2006 Percent

(Mbbl) (Mbbl) Change

---------------------------------------------------

PROVED

Developed Producing 4,693 3,871 +21%

Developed Non-Producing 322 858 -62%

Undeveloped 989 664 +49%

---------------------------------------------------

TOTAL PROVED 6,003 5,393 +11%

---------------------------------------------------

PROBABLE 3,013 2,372 +27%

---------------------------------------------------

TOTAL PROVED PLUS PROBABLE 9,016 7,765 +16%

---------------------------------------------------

-------------------------------------------------------------------------

BEFORE TAX 8% BEFORE TAX 10%

WORKING INTEREST PRESENT VALUE(1) PRESENT VALUE(1)

-------------------------------------------------------------------------

RESERVES 2007 2006 Percent 2007 2006 Percent

CATEGORY (Mbbl) (Mbbl) Change ($000's) ($000's) Change

-------------------------------------------------------------------------

PROVED

Developed

Producing 91,839 73,824 +24% 86,962 69,432 +25%

Developed

Non-Producing 5,316 14,977 -65% 4,842 14,013 -65%

Undeveloped 7,685 4,626 +66% 6,640 3,731 +78%

-------------------------------------------------------------------------

TOTAL PROVED 104,840 93,427 +12% 98,444 87,176 +13%

-------------------------------------------------------------------------

PROBABLE 39,020 35,174 +11% 34,215 31,073 +10%

-------------------------------------------------------------------------

TOTAL PROVED

PLUS PROBABLE 143,860 128,601 +12% 132,659 118,249 +12%

-------------------------------------------------------------------------

(1) It should not be assumed that the present values of estimated future

net cash flows shown above are representative of the fair market

value of the reserves. There is no assurance that such price and cost

assumptions will be attained and variances could be material. The

recovery and reserves estimates of crude oil, NGL and natural gas

reserves provided herein are estimates only and there is no guarantee

that the estimated reserves will be recovered. Actual crude oil,

natural gas and NGL reserves may be greater than or less than the

estimates provided herein.


Based on fourth quarter 2007 average production volume the proved plus probable reserve life index at December 31, 2007 is 6.5 years, up from 6.0 years compared to December 31, 2006. The majority of reserve growth in 2007 came at Pembina and the Deep Basin where wells typically have long reserve life. Oil and liquids represent 22 percent of December 31, 2007 reserves, up from 19 percent at December 31, 2006 as the majority of the reserves added through 2007 have been from liquids rich natural gas wells in Pembina and the Deep Basin.

The following table reconciles the reserve additions from capital spending, dispositions and revisions to opening estimates.



RECONCILIATION OF

COMPANY INTEREST RESERVES

BY BARREL OF OIL EQUIVALENT

----------------------------------------------------

BOE

----------------------------------------------------

Proved

Proved Plus Probable

FACTORS (Mboe) (Mboe)

----------------------------------------------------

December 31, 2006 5,393 7,765

Discoveries 174 238

Extensions 1,691 2,738

Infill drilling - -

Technical revisions 191 (259)

Acquisitions - -

Dispositions (88) (108)

Production(1) (1,358) (1,358)

----------------------------------------------------

December 31, 2007 6,003 9,016

----------------------------------------------------


Berens estimates unaudited 2007 capital spending net of the Marten Hills disposition ($6.75 million) of $32.9 million including $1.4 million spent on land. Net future capital as at December 31, 2007 is estimated at $21.2 million compared to $15.4 million at December 31, 2006. Proved plus probable finding and development costs for 2007 excluding land capital and including the change in future development capital of $5.8 million was $13.00 per boe. Including technical revisions, proved plus probable finding and development costs were $14.37 per boe in 2007. It should be noted that GLJ did not include 2007 reserve additions for first quarter drilling results in Marten Hills as it was sold prior to year end. Berens spent $4.6 million in Marten Hills in the first quarter of 2007 that is included in its 2007 capital spending of $32.9 million.

GLJ has also calculated the effects of the Alberta New Royalty Framework ("NRF") on the December 31, 2007 asset value based on low and high case assumptions as defined by GLJ and other reserve engineering firms in Calgary. The evaluation established that on a worst case basis, Berens' net asset value would remain unchanged at $132.7 million on a before tax 10% discount basis. In the high case, Berens' net asset value would increase by over 3 percent to $137.0 million. This is consistent with Berens' expectations based on its current asset mix and GLJ's price assumptions.

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

OPERATIONS

Berens is off to a solid start in 2008 with 3 (1.8 net) successful wells on three attempts in Pembina and one (0.24 net) cased well on 2 (0.44 wells) in the Deep Basin. A capital program of $30 million, to be funded from cash flow is budgeted for 2008. Berens continues to selectively add to its land position and currently has a land position of 100,000 net undeveloped acres which will provide all the selected drilling locations for the 2008 capital program.

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, and Berens does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. This cautionary statement expressly qualifies the forward-looking statements contained in this press release.

Contact Information

  • Berens Energy Ltd.
    Dell P. Chapman
    V.P. Finance & CFO
    (403) 303-3267

    or

    Berens Energy Ltd.
    Daniel F. Botterill
    President & Chief Executive Officer
    (403) 303-3262