Birch Lake Energy Inc.
TSX VENTURE : BLK

December 01, 2010 18:36 ET

Birch Lake Capital Inc. Announces Third Quarter Operating Results and Corporate Update

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2010) - Birch Lake Energy Inc. (TSX VENTURE:BLK) ("Birch Lake" or the "Corporation) announces financial and operating results for the third quarter ended September 30, 2010 and an update of current activities. The unaudited financial statements as at and for the nine months ended September 30, 2010, together with the notes thereto; and management's discussion and analysis of financial condition and results of operations as at and for the third quarter ended September 30, 2010 can be accessed electronically on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Third Quarter Highlights

  • Effective July 29, 2010, the Corporation completed the acquisition of Canadian Rigger Energy Inc. by way of a "three-cornered amalgamation" as the Corporation's Qualifying Transaction pursuant to the policies of the Exchange.

Operational Update

Birch Lake announces an update of its 2010 activities.

  • The Corporation held it's Annual and Special Meeting of Shareholders on October 6, 2010.
  • Effective October 25, 2010, the Corporation changed its name to Birch Lake Energy Inc. and it's common shares began trading on the TSX Venture Exchange under the new symbol "BLK" at the opening of trading on October 27, 2010.
  • Effective October 13, 2010 the Board of Directors granted an aggregate of 1,085,000 options to officers, directors and consultants of which 635,000 options were granted to directors of the Corporation. Each option represents the right to purchase one (1) common share of the Corporation at an exercise price of $0.20 per share on or before October 13, 2015. The grant of options is subject to Exchange approval.
  • The Corporation's head office has moved to Suite 1650 First Alberta Place, 777 – 8th Avenue S.W. Calgary Alberta T2P 3R5.
  • The Corporation is actively pursuing primarily oil opportunities in Alberta and Saskatchewan through farm-ins and Crown land postings and bids. Due to the current heavy oil price differential, the Corporation. is deferring further development of it's Edam heavy oil property at this time in favour of light oil opportunities.
  • The Corporation has a team of experienced individuals, mainly consultants, to provide expertise as required in the fields of drilling and production, oil and gas land and lease management, and exploration and production.
  • The Corporation is currently preparing a new web-site which will include details on management, directors, and activities and projects as they occur. This site is expected to be up within the next week.

Forward Looking Statements:

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Birch Lake's business, such as the review of strategic alternatives and establishing a portfolio base and developing a new web-site which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Birch Lake's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Birch Lake believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Birch Lake does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

About Birch Lake Energy Inc.

Birch Lake is a junior oil and gas company engaged in the exploration for and the acquisition, development and production of oil and natural gas reserves. The Corporation's common shares are listed to trade on the TSX Venture Exchange under the symbol "BLK".

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Birch Lake Energy Inc.
    William H. Petrie
    President and Chief Executive Officer
    (403) 457-1944