BIR Birchcliff Energy Ltd

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Birchcliff Energy Ltd. ("Birchcliff") (TSX:BIR) is pleased to report the
following record production volumes and updates:




--  2013 Exit Production Volumes. Estimated daily production during the last
    two weeks of December 2013 exceeded 30,000 boe per day, exceeding
    Birchcliff's previously estimated 2013 exit production volumes. 
--  January 2014 Production Volumes. Estimated average production was 30,500
    boe per day (83% natural gas and 17% oil and NGL'S) for the first two
    weeks of January 2014. 
--  Acquisition of a Partner's 30% Working Interest in Pouce Coupe, Alberta.
    Birchcliff has purchased approximately 9.6 MMcfe per day (1,600 boe per
    day) of a partner's 30% working interest Montney/Doig natural gas
    production in Pouce Coupe, Alberta for $56 million, effective January 1,
    2014. The transaction closed this morning, January 15, 2014. The
    acquisition includes 39 (11.6 net) sections of land on the Montney/Doig
    Natural Gas Resource Play, bringing Birchcliff's working interest to
    100% on the acquired lands and production. Birchcliff operates the
    production, the majority of which goes to Birchcliff's 100% owned Pouce
    Coupe South Natural Gas Plant. The transaction has excellent metrics for
    production, cash flow and reserves and resources. The acquisition is
    strategic in that it allows Birchcliff to consolidate lands it formally
    held at a 70% working interest, with lands it holds at 100% working
    interest, allowing for a contiguous development plan, eliminating
    holding buffers and increasing flexibility in capital allocation.  
--  Current Production. Birchcliff's current production, after the
    acquisition, is approximately 32,100 boe per day. 
--  Increase to 2014 Exit Production Guidance. Birchcliff's 2014 exit
    production guidance has increased to between 37,500 and 39,500 boe per
    day, up from between 36,000 and 38,000 boe per day. 
--  2014 Hedging Program Update.  
    --  Natural Gas. Birchcliff has contracted forward physical sales of
        50,000 GJ'S per day, representing approximately 30% of its estimated
        gas volumes during the summer months, April 1 - October 31, 2014,
        for approximately $4.20 per Mcf.  
    --  Oil. Birchcliff has purchased WTI put options for 1,000 barrels per
        day of crude oil for the calendar year 2014, comprised of 500
        barrels per day with a strike price of US $90 and 500 barrels per
        day with a strike price of US $85.
--  2013 Reserves and 2013 Resource Update. Birchcliff continues to expect
    material reserve additions and material resource additions, in all
    categories, as compared to its 2012 Reserves Evaluation and 2012
    Montney/Doig Natural Gas Resource Assessment. 
--  February 12, 2014 Press Release. Birchcliff expects to release its
    unaudited 2013 year-end financial results; 2013 year-end Reserves
    Evaluation; 2013 year-end Montney/Doig Natural Gas Resource Assessment;
    2013 finding and development costs; 2014 Budget; and an Operations
    Update, after the close of the financial markets on February 12, 2014.



Jeff Tonken, President and CEO of Birchcliff said, "We are extremely pleased
with our continued production growth, outperforming our public production
guidance while continuing to bring our operating costs down. We believe our
summer natural gas hedging program will protect our cash flow at a time when gas
prices are traditionally weak. Birchcliff is looking forward to releasing
excellent financial and operating results on February 12, 2014."


ADVISORIES

Boe Conversions:  Barrel of oil equivalent ("boe") amounts have been calculated
by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas
to one barrel of oil (1 bbl). Boe amounts may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.


MMcfe Conversions:  Millions of cubic feet of gas equivalent ("MMcfe") have been
calculated by using the conversion ratio of one barrel of oil (1 bbl) to six
thousand cubic feet (6 Mcf) of natural gas. MMcfe amounts may be misleading,
particularly if used in isolation. A conversion ratio of 1 bbl to 6 Mcf is based
on an energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.


Forward Looking Information: This Press Release contains forward-looking
information within the meaning of applicable Canadian securities laws.
Forward-looking information relates to future events or future performance and
is based upon the Corporation's current internal expectations, estimates,
projections, assumptions and beliefs. All information other than historical fact
is forward-looking information. Information relating to reserves and resources
is forward-looking as it involves the implied assessment, based on certain
estimates and assumptions, that the reserves and resources exist in the
quantities estimated and that they will be commercially viable to produce in the
future. Words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed" and other
similar words that convey certain events or conditions "may" or "will" occur are
intended to identify forward-looking information. In particular, this Press
Release contains forward-looking information relating to expectations of
reserves and resource additions from volumes disclosed last year; and expected
production increases.


The forward-looking information is based upon assumptions as to future commodity
prices, currency exchange rates, inflation rates, well production rates, well
drainage areas, success rates for future drilling and availability of labour and
services. Estimates as to 2014 average annual production rates assume that no
unexpected outages occur in the infrastructure that the Corporation relies on to
produce its wells, that existing wells continue to meet production expectations
and future wells, scheduled to come on production in 2014, meet timing and
production expectations.


Undue reliance should not be placed on forward-looking information, as there can
be no assurance that the plans, intentions or expectations upon which they are
based will occur. Although the Corporation believes that the expectations
reflected in the forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. As a consequence,
actual results may differ materially from those anticipated.


Forward-looking information necessarily involves both known and unknown risks
associated with oil and gas exploration, production, transportation and
marketing such as uncertainty of geological and technical data, imprecision of
reserves and resource estimates, operational risks, environmental risks, loss of
market demand, general economic conditions affecting ability to access
sufficient capital, changes in governmental regulation of the oil and gas
industry and competition from others for scarce resources.


The foregoing list of risk factors is not exhaustive. Additional information on
these and other risk factors that could affect operations or financial results
are included in the Corporation's most recent Annual Information Form and in
other reports filed with Canadian securities regulatory authorities.
Forward-looking information is based on estimates and opinions of management at
the time the information is presented. The Corporation is not under any duty to
update the forward-looking information after the date of this Press Release to
conform such information to actual results or to changes in the Corporation's
plans or expectations, except as otherwise required by applicable securities
laws.


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; Cumulative Redeemable Preferred Shares,
Series A; Cumulative Redeemable Preferred Shares, Series C; and Warrants are
listed for trading on the Toronto Stock Exchange under the symbols "BIR",
"BIR.PR.A", "BIR.PR.C" and "BIR.WT" respectively.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Birchcliff Energy Ltd.
Jeff Tonken
President and Chief Executive Officer
(403) 261-6401
(403) 261-6424 (FAX)


Birchcliff Energy Ltd.
Bruno Geremia
Vice-President and Chief Financial Officer
(403) 261-6401
(403) 261-6424 (FAX)


Birchcliff Energy Ltd.
Jim Surbey
Vice-President, Corporate Development
(403) 261-6401
(403) 261-6424 (FAX)


Birchcliff Energy Ltd.
Suite 500, 630 - 4th Avenue S.W.
Calgary, AB T2P 0J9
(403) 261-6401
(403) 261-6424 (FAX)

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