Birchcliff Energy Ltd.

Birchcliff Energy Ltd.

November 22, 2006 08:33 ET

Birchcliff Energy Ltd. Announces Closing of $30,109,000 Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 22, 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 completed its previously announced $30.1 million bought deal equity financing.

Birchcliff issued 3,200,000 Common Shares ("Common Shares") at $4.40 each and 2,740,000 Common Shares on a Flow-Through basis ("Flow -Through Shares") at $5.85 each for aggregate gross proceeds of $30,109,000. The Common Shares and Flow-Through Shares were offered in certain provinces of Canada pursuant to a short form prospectus.

The net proceeds of this financing will initially be used to reduce bank indebtedness which will ultimately be re-drawn to fund exploration and development activities.

The syndicate of underwriters was led by GMP Securities L.P. and included Sprott Securities Inc., HSBC Securities Canada Inc., Paradigm Capital Inc., Raymond James Ltd. and Scotia Capital Inc.

After giving effect to this financing Birchcliff has issued and outstanding 64,114,413 common shares.

This press release shall not constitute and offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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