Peace River Arch - Alberta
Natural Gas & Crude Oil exploration, development and production.
Birchcliff Energy Ltd. is a junior oil and gas exploration, development and production company based in Calgary, Alberta. Birchcliff's management team was assembled in the fall of 2004. In January 2005, the Corporation raised gross proceeds of $60 million from its initial equity financing and its shares became publicly listed and traded. On May 31, 2005, Birchcliff completed the acquisition of its core properties in the Peace River Arch area of Alberta for a price of approximately $243 million. Shortly thereafter, Birchcliff's shares were listed on the Toronto Stock Exchange.
Our production rate on Monday, November 10, 2008 was estimated to be approximately 12,000 BOE per day.
Birchcliff now has 7 gross (6.0 net) horizontal Montney/Doig natural gas wells behind pipe which it expects to have on production before year end.
We are currently drilling our last horizontal Montney/Doig natural gas well (0.7 net) in 2008 and we expect this well will also be on production before year end.
The average first month initial production rate of all the wells in our horizontal drilling program to date exceeds 600 BOE per day
I am pleased to advise you that one of the horizontal wells, (0.7 net), that will be on production shortly, was tested at a stabilized rate of 11 mmcf per day of raw gas.
Directors, management and their families own approximately 10.4% of the outstanding shares of Birchcliff, which aligns their interests with those of other shareholders. These shares were acquired on the same terms as shares were issued to the private investors.
Birchcliff's strategy is to expand its natural gas and light oil focused asset base in the Peace River Arch area of Alberta. Its objective is to acquire and hold, large working interests in several highly focused producing areas in the Peace River Arch where it can hold operatorship of its assets and control the infrastructure necessary to facilitate the exploitation, development and exploration potential of those areas.
We expect to continue to actively purchase assets or corporate entities in order to achieve these goals. We continue to develop grass roots exploration programs in our areas of interest to augment our acquisition strategies. This includes purchasing crown lands, farming-in on prospect lands, shooting and purchasing seismic and, most importantly, drilling wells in our focus areas.