Birch Lake settles C$2.38 million of C$5 million placement of units

Upsized offering finances capital program and working capital purposes

By Devika Patel

Knoxville, Tenn., July 7 - Birch Lake Energy Inc. said it increased a non-brokered private placement of units to C$5 million. The deal priced for C$2.5 million on May 31. The company also said it raised C$2.38 million in the first tranche.

The company will now sell 15 million flow-through units of one flow-through common share and a warrant at C$0.20 apiece for C$3 million. It also will sell 12.5 million common units of one common share and a warrant at C$0.16 apiece for C$2 million.

Each warrant is exercisable at C$0.30 for one year. The strike price reflects a 93.55% premium to the May 30 closing share price of C$0.155.

In the initial tranche, Birch Lake sold 1,048,750 common units and 11,070,000 flow-through units.

Proceeds will be used for the company's capital program and general working capital purposes.

The junior oil and gas company is based in Calgary, Alta.

Issuer:	Birch Lake Energy Inc.
Issue:	Flow-through units of one flow-through common share and a half-share warrant, common units of one common share and a warrant
Amount:	C$5 million
Warrants:	One warrant per unit
Warrant expiration:	One year
Warrant strike price:	C$0.30
Agent:	Non-brokered
Pricing date:	May 31
Upsized:	July 7
Settlement date:	July 7 (for C$2,381,800)
Stock symbol:	TSX Venture: BLK
Stock price:	C$0.15 at close May 31
Market capitalization:	C$4.72 million
Flow-through units
Amount:	C$3 million
Units:	15 million
Price:	C$0.20
Common units
Amount:	C$2 million
Units:	12.5 million
Price:	C$0.16

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