Birchcliff Energy Ltd.

Birchcliff Energy Ltd.

October 31, 2006 11:59 ET

Birchcliff Energy Ltd. Increases Bought Deal Equity Financing to $30,109,000

CALGARY, ALBERTA--(CCNMatthews - Oct. 31, 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 further to its press release issued earlier today it has agreed to increase the Common Shares to be issued pursuant to its bought deal financing and it has now entered into an agreement to sell to a syndicate of underwriters led by GMP Securities L.P. and including Sprott Securities Inc., HSBC Securities Canada Inc., Paradigm Capital Inc., Raymond James Ltd. and Scotia Capital Inc., 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 will be offered in certain provinces of Canada pursuant to a short form prospectus.

Proceeds of the offering will be used to fund a portion of Birchcliff's ongoing development and exploration programs and for general corporate purposes. Birchcliff will renounce $16,029,000 of Canadian exploration expenses favour of the purchasers of the Flow-Through Shares on or before December 31, 2006.

Closing is anticipated to occur on or about November 22, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Birchcliff is a Calgary based, junior oil and natural gas exploration and development company whose assets are focused in the Peace River Arch area of Alberta. Its common shares are traded on the Toronto Stock Exchange under the symbol "BIR".

ADVISORY: This document contains forward-looking statements. More particularly, this document contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Birchcliff believes that the expectations reflected in these forward- looking statements are reasonable, undue reliance should not be placed on them because Birchcliff can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this press release are made as of the date hereof and Birchcliff undertakes no obligation, whether as a result of new information, future events or other wise, unless so required by applicable securities laws.

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)