Birchcliff Energy Ltd.
TSX : BIR

Birchcliff Energy Ltd.

December 18, 2006 19:05 ET

Birchcliff Announces Record Production

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Birchcliff Energy Ltd. ("Birchcliff") (TSX:BIR) is pleased to announce that it has achieved it's year end production target and record production levels.

Production

Birchcliff is pleased to announce that Birchcliff's estimated production for the week of December 8 to 14, 2006 was in excess of 6,500 boe per day and sets a new weekly production record for the company. This meets Birchcliff's previously announced year end production rate target of 6,500 boe per day.

2006 Year End Debt

Birchcliff expects that its year end debt for 2006 will be approximately $90 million. Birchcliff's current credit facilities, which were recently reviewed by its lending syndicate, are $120 million. In light of Birchcliff's recent equity issue, and its strong production base, Birchcliff has terminated the sales process of it's previously announced royalty barrels.

Drilling

Currently, Birchcliff has one drilling rig working in its Pouce Coupe area of the Peace River Arch. Birchcliff expects to have two drilling rigs working in January 2007. One rig will be drilling the first of three earning wells in the strategic 21 section Pouce Coupe Farm-in previously announced on November 14, 2006. The second rig will be drilling the first of four high risk - high reward exploration wells planned in the first half of 2007.

2007 Budget

Birchcliff expects to issue its 2007 budget in late January 2007, at a time when the trend for 2007 winter natural gas prices will be better known. Birchcliff expects to spend its cash flow plus $16 million, of which $16 million represents its flow- through commitments, for 2007.

Advisory

FORWARD LOOKING STATEMENTS

Certain information set forth in this press release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond Birchcliff's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the competition for qualified personnel and management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect and, as such, undue reliance should not be placed on forward-looking statements. Birchcliff's actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will derive therefrom. Birchcliff disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

BOE Conversions: The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent ("6:1"). A boe conversion ratio of 6:1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Birchcliff is a publicly traded company that trades on the TSX Exchange under the symbol "BIR".

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Birchcliff Energy Ltd.
    Jeff Tonken
    President and Chief Executive Officer
    (403) 261-6401
    (403) 261-6424 (FAX)
    or
    Birchcliff Energy Ltd.
    Bruno Geremia
    Vice President and Chief Financial Officer
    (403) 261-6401
    (403) 261-6424 (FAX)