SBE Silverbirch Energy Corporation

CALGARY, Feb. 8 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ TSX V Trading Symbol: SBE CALGARY, Feb. 8 /CNW/ - SilverBirch Energy Corporation ("SilverBirch" or the "Corporation") is pleased to announce an increase to its contingent bitumen resource estimates following an independent review of the bitumen resources attributable to its major oil sands projects, the Frontier and Equinox Oil Sands Mining Projects. Sproule Unconventional Limited ("Sproule") has prepared an independent opinion of the contingent bitumen resources of SilverBirch effective as of December 31, 2010.  Sproule's work on the Frontier and Equinox Projects included a geological evaluation and a technical review of the mine, tailings and extraction plans of the Frontier and Equinox Projects. "We are very pleased to advise that the best estimate has increased from 1,450 to 2,449 million barrels for the Frontier Project and from 330 to 375 million barrels for the Equinox Project", announced Howard Lutley, President and Chief Executive Officer of SilverBirch.  "The total best estimate of the Frontier and Equinox Projects is 2,824 million barrels with 50% of that resource, or 1,412 million barrels owned by SilverBirch.  This equates to a 58% increase in the best estimate." These increases reflect the culmination of a significant amount of work over the last year to advance the Frontier and Equinox Projects to the regulatory application stage, and indicate the maturity of the project planning. Specifically, the factors contributing to the higher resource totals include: the additional engineering recently completed for the pre-feasibility study; the results from the 68 core holes drilled in the resource infill drilling program in early 2010; additional geotechnical data collection and analysis which was also conducted during 2010; and an increase in the total volume to bitumen in place ratio (TV:BIP) from 12:1 to 16:1 for the mine pit, which in the Corporation's view is supported by the current economic environment and resource conservation practices. The mine plan, as reviewed by Sproule will form the basis of the Corporation's mine development plan and regulatory application, which we anticipate will be submitted in the third quarter of 2011. SilverBirch Energy Corporation Contingent Bitumen Resources(1) as of December 31, 2010 _______________________________________________________________ | | Project 100% |SilverBirch's Gross Share| | Project | (Millions of | (SilverBirch's 50% | | | Barrels) | Working Interest) | | | | (Millions of Barrels) | |_______________|_____________________|_________________________| | | Low |Best | High |Low|Best | High | |_______________|_____|_____|_________|___|_____|_______________| | Frontier |1,509|2,449| 2,743 |755|1,224| 1,371 | |_______________|_____|_____|_________|___|_____|_______________| | Equinox | 286 | 375 | 420 |143| 188 | 210 | |_______________|_____|_____|_________|___|_____|_______________| | Total | |2,824| | |1,412| | |_______________|_____|_____|_________|___|_____|_______________| (1)The term "contingent resources" is taken from the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") as published by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Petroleum Society of Canada.  The volumes listed in the chart above entitled, "Contingent Bitumen Resources" refer to potentially recoverable volumes of asphaltene reduced bitumen resources. The volumes of contingent bitumen resources in the above chart were calculated at the outlet of the proposed extraction plant.  There is no certainty that it will be commercially viable to produce any portion of the contingent bitumen resources. Methodology The preparation and disclosure of the reported resource estimates are the responsibility of SilverBirch's management and require approval by the Corporation's Audit and Reserves Committee and Board of Directors. Sproule's responsibility is to express an opinion on the contingent bitumen resources data based on the evaluation and review. Sproule carried out the evaluation and review in accordance with standards established by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.  These standards require that the contingent resources estimates be prepared in accordance with the COGE Handbook. Contingent resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as ''contingent resources'' the estimated discovered recoverable quantities associated with a project in the early project stage. There is no certainty that either the Frontier Project or the Equinox Project will produce any portion of the volumes currently classified as "contingent resources". The primary contingencies which currently prevent the classification of the contingent resources disclosed in the table above as reserves consist of: current uncertainties around the specific scope and timing of the development of each of the Frontier and Equinox Projects; lack of regulatory approvals for such projects; the uncertainty regarding marketing plans for production from the subject areas; improved estimation of project costs; commodity price fluctuations, timing, costs estimates and final Board of Directors approval of each of SilverBirch and Teck Resources Limited. The Frontier Project is one of the largest remaining undeveloped mineable oil sands projects.  It is adjacent to Shell's Pierre River Prospect and across the Athabasca River from the Fort Hills Project.  While the leases are in an area of proposed active oil sands development, it should be noted that currently ground access is only available during the winter months.  Provision of year round access, utility and product transport infrastructure is being incorporated into the current engineering studies and the costs for such infrastructure will be included in future capital cost estimates. Contingent resources do not constitute, and should not be confused with, reserves.  There is no certainty that it will be commercially viable to produce any portion of the contingent resources on any of the above mentioned properties. For further information including risk factors, please see SilverBirch's Management Discussion and Analysis for the period ended September 30, 2010 which was filed on SEDAR at www.sedar.com and the Corporation's website at www.silverbirchenergy.com. About SilverBirch SilverBirch Energy Corporation is a pre-production oil sands company headquartered in Calgary, Alberta, Canada.  SilverBirch has a rich portfolio of mining and in situ oil sands properties, including 50% ownership of the Frontier and Equinox Projects.  To learn more, please visit www.silverbirchenergy.com. FORWARD-LOOKING INFORMATION:  This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.  The forward-looking information in this news release relates,, but is not limited to, statements with respect to the Corporation's anticipated regulatory application and the development of the Corporation's properties.  In addition information relating to "resources" is forward-looking information, as it involves the implied assessment, based on estimates and assumptions, that the resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. The forward-looking information set out in this news release, is based on certain expectations and assumptions regarding, among other things, the exploration, delineation and development of the Frontier and Equinox Projects' geological and engineering estimates; the geography of the areas in which SilverBirch will be exploring; and the sufficiency of budgeted capital expenditures in carrying out planned activities.  These expectations and assumptions are based on certain factors and events that are not within the control of SilverBirch and there is no assurance they will prove to be correct. Forward-looking information is subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in such forward-looking information.  Such risks, uncertainties and factors include, among others, the risk that the regulatory application in respect of the Frontier and Equinox Projects will not be submitted in the timeframe or on the terms expected or at all; risks relating to the early stage of development of SilverBirch and the Frontier and Equinox Projects; and the general risks associated with exploring for, developing and producing bitumen.  In addition, there are numerous uncertainties inherent in estimating bitumen, including many factors beyond the Corporation's control, and no assurance can be given that the indicated level of bitumen or the recovery thereof will be realized. In general, estimates of bitumen are based upon a number of factors and assumptions made as of the date on which the resource estimates were determined, such as geological and engineering estimates, certain TV:BIP ratios and pit boundaries, which have inherent uncertainties.  Additional risks relating to the business and operations of SilverBirch are set forth in the Corporation's continuous disclosure documents filed under the Corporation's profile on SEDAR at www.sedar.com. SilverBirch undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law.  The reader is cautioned not to place undue reliance on forward looking information. 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. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2011/08/c8801.html pHoward Lutley, President and Chief Executive Officer, at 403-538-7030/p

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