Birch Lake Energy Inc. and Veraz Petroleum Ltd. (Veraz) reported that, further to the proposed acquisition announced on November 6, 2012, they have entered into an arrangement agreement (the "Arrangement Agreement") with respect to the acquisition by Birch Lake of all of the issued and outstanding common shares of Veraz (the "Transaction").

Under the terms of the Arrangement Agreement, Veraz shareholders will receive 0.112100125 of a Birch Lake common share for every one (1) Veraz common share. The Transaction will be undertaken by means of a plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta).

Birch Lake will issue approximately 6.0 million common shares to Veraz shareholders. The Arrangement Agreement contemplates that Veraz will hold a meeting of its shareholders on or prior to December 20, 2012 to permit Veraz shareholders to vote on the Arrangement.

Tags: Birch Lake Energy Inc.