Berens Energy Ltd.

September 10, 2007 23:59 ET

Berens Energy Ltd.- Sale of Assets at Marten Hills

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2007) -


Berens Energy Ltd. ("Berens") (TSX:BEN) announces the sale of its Marten Hills assets for cash proceeds of $6.75 million. The transaction is effective September 1, 2007 and is scheduled to close on or before September 30, 2007.

"Marten Hills is a winter access area and has longer lead times for bringing on new production than in our other areas. We will use the proceeds from the sale in our more prospective Pembina and Deep Basin areas and to improve our financial condition" stated Dan Botterill, President & CEO.

Current production in Marten Hills is 250 boe/d net to Berens. Total net reserves on a proved plus probable basis as determined by GLJ Petroleum Consultants at July 1, 2007 are 1.7 BCF of natural gas (280,000 boe). After taking into account the sale of Marten Hills, Berens is now estimating year end production of 3,850 to 3,950 boe/d and average 2007 production of 3,700 to 3,800 boe/d. Berens' available operating bank line is $65 million and will be reduced to $62.5 million when the sale is closed.

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. 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 wellhead.

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


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