Berens Energy Ltd. announces increase to its 2005 capital program and private placement

CALGARY, Aug. 25 /CNW/ - Berens Energy Ltd. ("Berens" or the "Company")
is pleased to announce that it has received approval from its board of
directors to increase its 2005 capital program to $26.5 million from the
originally approved amount of $20 million. The increase in the capital program
reflects the success that Berens has had in accumulating a significant land
position in the Karr and Berland River areas of west central Alberta. Berens
plans to aggressively pursue drilling opportunities on this 22 section (14 net
sections) position characterized by its strong multi-zone natural gas
potential.
Berens further announces that it has entered into a bought deal private
placement financing agreement with a syndicate of underwriters led by Peters &
Co. Limited and including CIBC World Markets and First Associates Investments
Inc. The offering will consist of 4,500,000 common shares at $1.95 per common
share and 2,000,000 flow-through common shares at $2.45 per share flow-through
common share for gross proceeds of $13,675,000. The common shares and     
flow-through common shares will be issued pursuant to prospectus exemptions
available under applicable securities legislation in British Columbia, Alberta
and Ontario. The common shares may also be placed privately in the United
States with certain qualified institutional buyers pursuant to Rule 144A and
with certain accredited institutional investors under Regulation D.
The net proceeds of the offering will be used to fund Berens' increased
capital expenditure program in 2005, to fund its 2006 capital expenditure
program and for general corporate purposes. Berens will incur Canadian
exploration expenses prior to December 31, 2006 in the aggregate amount of not
less than the total amount of the gross proceeds raised from the issue of 
flow-through common shares and renounce the expenditures to the purchasers of
the flow-through common shares such that $2.45 per flow-through common share
shall be deductible against the subscribers' income for the fiscal year ended
December 31, 2005.
Closing of the offering is expected to occur on or about September 12,
2005 and is subject to the receipt of all requisite regulatory and stock
exchange approvals. The shares issued pursuant to the offering will be subject
to a four-month hold period from the date of the closing of the private
placement.
This news release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The common shares offered will not be and have not been
registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state securities laws.

Berens is a publicly traded Canadian energy company involved in the
exploration, development and production of natural gas and crude oil in
western Canada.
This information release may contain certain forward-looking information.
Actual future results may differ materially from those contemplated. The
risks, uncertainties and other factors that could influence the actual results
are described in documents filed with regulatory authorities.

The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
%SEDAR: 00020114E