Birchcliff Energy Ltd. Announces Increase in Ownership by Seymour Schulich and Agreement for Firm Service Transportation on Canadian Mainline
Birchcliff Energy Ltd. ("Birchcliff") (TSX:BIR) is pleased to announce that Mr. Seymour Schulich has acquired an additional 2,500,000 common shares of Birchcliff and that Birchcliff has signed agreements for the firm service transportation of 175,000 GJ/d of natural gas.
INCREASE IN OWNERSHIP BY SEYMOUR SCHULICH
Mr. Schulich has informed Birchcliff that he recently acquired control and direction over an additional 2,500,000 common shares of Birchcliff through the facilities of the Toronto Stock Exchange. As a result of this purchase, Mr. Schulich now beneficially owns or exercises control or direction over a total of 37,500,000 common shares of Birchcliff, representing approximately 14% of the current issued and outstanding common shares. Mr. Schulich advised Birchcliff that he acquired the additional 2,500,000 common shares for investment purposes.
This additional investment by Mr. Schulich represents a vote of confidence in Birchcliff's assets and management. Birchcliff believes that the current trading price of its common shares is not reflective of the value of Birchcliff's assets as a whole and it appreciates Mr. Schulich's continued support and financial investment.
ADDITIONAL FIRM SERVICE TRANSPORTATION
Birchcliff is also pleased to announce that it has signed agreements with TransCanada Pipelines ("TCPL") for the firm service transportation of 175,000 GJ/d in aggregate (approximately 155 MMcf/d) of natural gas on TCPL's Canadian Mainline for a ten year term, whereby natural gas will be transported from the Empress receipt point in Alberta to the Dawn trading hub located in Southern Ontario. Provision of the service is conditional on, among other things, TCPL receiving National Energy Board approval on terms and conditions satisfactory to TCPL.
"We believe that the agreement reached by industry with TCPL regarding the implementation of a long-term fixed price toll on TCPL's mainline to Dawn, Ontario is vitally important to Birchcliff and Alberta's other natural gas producers," said Jeff Tonken, President and Chief Executive Officer. "We strongly support this initiative because this new toll when implemented should provide Alberta natural gas producers with the ability to compete effectively for natural gas markets in eastern Canada."
Birchcliff is a Calgary, Alberta based intermediate oil and gas company with operations concentrated within its one core area, the Peace River Arch of Alberta. Birchcliff's Common Shares and Cumulative Redeemable Preferred Shares, Series A and Series C are listed for trading on the Toronto Stock Exchange under the symbols "BIR", "BIR.PR.A" and "BIR.PR.C", respectively.
SOURCE: Birchcliff Energy Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.