Birchcliff Energy Ltd.
TSX : BIR

Birchcliff Energy Ltd.

February 21, 2008 14:12 ET

Birchcliff Energy Ltd. Announces a $115 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Feb. 21, 2008) -

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

Birchcliff Energy Ltd. ("Birchcliff" or the "Company") (TSX:BIR) is pleased to announce that it has entered into a bought deal equity financing agreement with a syndicate of underwriters led by GMP Securities L.P. and Scotia Capital Inc. and including Cormark Securities Inc., HSBC Securities (Canada) Inc. Canaccord Capital Corporation, Raymond James Ltd. and RBC Capital Markets (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale to the public 12,500,000 common shares (the "Common Shares") at a price of $8.00 per Common Share and 1,522,843 common shares to be issued on a flow through basis (the "Flow Through Common Shares") at a price of $9.85 per Flow Through Common Share for aggregate gross proceeds of $115,000,000 (the "Offering"). In addition, the Underwriters have been granted an overallotment option (which may be exercised up to 30 days after closing of the Offering) to purchase up to 1,875,000 additional Common Shares at a price of $8.00 per Common Share for further gross proceeds of $15,000,000, which if fully exercised, would increase the gross proceeds from the Offering to $130,000,000.

The proceeds from the Offering will be used to repay Birchcliff's $100,000,000 Bridge Credit Facility, to fund Birchcliff's drilling programs and for general corporate purposes.

The Offering is subject to certain conditions including required regulatory approvals. The Common Shares will be offered in all provinces of Canada, by way of a short form prospectus and in the U.S. on a private placement basis pursuant to exemptions from registration requirements. The closing of the Offering is expected to occur on March 14, 2008.

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. Except as required by law, 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.

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)
    or
    Birchcliff Energy Ltd.
    Jim Surbey
    Vice President, Corporate Development
    (403) 261-6401
    (403) 261-6424 (FAX)