Birchcliff Energy Ltd.
TSX : BIR

Birchcliff Energy Ltd.

June 30, 2009 09:10 ET

Birchcliff Energy Ltd. Announces the Closing of Its $62 Million Financing

CALGARY, ALBERTA--(Marketwire - June 30, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Birchcliff Energy Ltd. ("Birchcliff" or the "Company") (TSX:BIR) is pleased to announce that it has completed a bought deal equity financing with a syndicate of underwriters co-led by GMP Securities L.P. and Scotia Capital Inc. and including Cormark Securities Inc., HSBC Securities (Canada) Inc., RBC Capital Markets,Thomas Weisel Partners Canada Inc. and Canaccord Capital Corporation pursuant to which the underwriters have purchased on a "bought deal" basis 8,000,000 common shares ("Common Shares") of Birchcliff at a price of $6.20 per Common Share for aggregate gross proceeds of $49,600,000 (the "Bought Deal Offering").

Birchcliff is also pleased to announce that Mr. Seymour Schulich has purchased 2,000,000 Common Shares of Birchcliff by way of private placement at a price of $6.20 per common share for aggregate proceeds of $12,400,000 (the "Private Placement").

Net proceeds of the Bought Deal Offering and Private Placement will initially be used to pay down the Company's bank debt and then will be used to fund a portion of the Company's ongoing capital program.

Birchcliff is extremely pleased that the Province of Alberta announced the extension of the drilling incentive and new well royalty programs for one year.

The $200 per meter drilled royalty credit and the 5% royalty rate for new wells is very significant to Birchcliff.

In the light of last week's announcement, Birchcliff is reviewing its 2009 and 2010 capital spending and will provide guidance for the remainder of 2009 and a portion of 2010 in the next several weeks.

Birchcliff Energy Ltd. now has 122,807,637 common shares outstanding.

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".

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

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. Securities may not be offered or sold in the United States absent registration in the United States or the availability of an exemption from such registration

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)