Birch Lake Energy Inc. and its partner, a private Alberta company, have spud the first well in a two program.

The wells will both be drilled to a total drill depth of approximately 3400 metres including a horizontal component of approximately 1200 metres, and completed with a multi-stage frac to test the Cardium formation. The corporation has a 40% working interest in both wells, each anticipated to cost between $3.5 and $4.5 million . The cost of the wells will be satisfied through the Corporation's existing cash resources and the cash obtained from the proposed acquisition of Veraz Petroleum Ltd. (refer to press release dated November 6, 2012 for additional information).

The wells will be drilled and completed sequentially. The drilling of each well is anticipated to take approximately 20-25 days, with the frac and completion for each well anticipated to take approximately 14 days.

Tags: Birch Lake Energy Inc.