Birch Lake Energy Inc. Provides Lochend Drilling Update

CALGARY, Dec. 21, 2012 /CNW/ - Birch Lake Energy Inc. ("Birch Lake" or the "Corporation") (TSXV: BLK) is pleased to provide the following update on the first of its previously announced two well drilling program on its Lochend Cardium property.

The initial well was drilled to its projected depth and completed with a multi-stage slick-water frac of the horizontal section. Over a swabbing period of 115 hours, the well recovered a total of 6,305 barrels of fluid comprising 5821 barrels of frac fluid and 484 barrels of oil. The final 12 hours of swabbing recovered 97 barrels of fluid with a final oil cut of 70%.  Gas rates during the testing were too small to measure while approximately 6,841 barrels of frac fluid remain to be recovered (approximately 50% of frac load). The well has been secured and shut in for pressure build-up over Christmas, while drilling and casing of the second well is underway with completion planned for early January 2013.

The Corporation is very pleased with the initial results of this first well as it is more than 6 miles along trend from nearest Cardium production. These results confirm the Cardium potential over the majority of Birch Lake's lands and greatly de-risk further drilling.

The Corporation will provide further announcements as additional information becomes available.

Forward Looking Statements

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Birch Lake's business, and Birch Lake's drilling plans.  Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Birch Lake's control, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Birch Lake believes that the expectations in their respective forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Birch Lake does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

About Birch Lake Energy Inc.

Birch Lake is a junior oil and gas company engaged in the exploration for and the acquisition, development and production of oil and natural gas reserves in Western Canada. The Corporation's common shares are listed to trade on the TSX Venture Exchange under the symbol "BLK".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Birch Lake Capital Inc.

William H. Petrie
President and Chief Executive Officer
[phone]