Birchcliff Energy Ltd.

Birchcliff Energy Ltd.

March 08, 2005 08:00 ET

Birchcliff Energy Ltd. Announces Acquisition and Operations Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BIRCHCLIFF ENERGY LTD.

TSX VENTURE SYMBOL: BIR

MARCH 8, 2005 - 08:00 ET

Birchcliff Energy Ltd. Announces Acquisition and
Operations Update

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Birchcliff (TSX
VENTURE:BIR) is pleased to announce that it has entered into a letter
agreement wherein it has agreed to purchase, effective January 1, 2005,
for $2.75 million, a 100% working interest in a gas processing facility
together with a 68% working interest in 21 sections of land which
produce net to Birchcliff approximately 70 boe/day of natural gas in the
Peace River Arch. Further, Birchcliff has obtained the right to review
approximately 80 square miles of 3D seismic, a portion of which covers
the acquired producing properties.

The plant and production provides Birchcliff with infrastructure to
develop natural gas in the Peace River Arch. Birchcliff currently
expects to recomplete several existing gas wells and late in the 3rd
quarter Birchcliff intends to drill several gas wells on the acquired
lands.

Birchcliff is also pleased to announce that is has drilled and cased a
well in the Peace River Arch with the potential of 3 productive zones.
Birchcliff will test this well during the summer of 2005. Birchcliff has
a 30% working interest in the well and has at least one other potential
follow-up drilling location.

Finally, Birchcliff continues to be active in identifying possible
acquisitions, bidding on both public and private opportunities.

This press release is not for distribution to United States Newswire
Services or for dissemination in the United States.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Birchcliff Energy Ltd.
    A. Jeffery Tonken
    President & Chief Executive Officer
    (403) 261-6410
    or
    Birchcliff Energy Ltd.
    Jim Surbey
    Vice President, Corporate Development
    (403) 261-6416
    The TSX Venture Exchange has not approved or disapproved the contents of
    this news release.