Results Of Operations:

Production Volume:

Volume averaged 4,550 boe/d for the first quarter of 2009, up 19% compared to 3,812 boe/d in the year-ago quarter. Natural gas represented 80% of production in the first quarter of 2008 with the remaining production being 19% light oil and natural gas liquids and one% conventional heavy oil.

An active drilling program with high success rates was carried out during the fourth quarter of 2008 and the first quarter of 2009. Well results have been strong and in particular, Berens Energy’s first Pembina horizontal well came on stream in November 2008 at rates of over eight million cubic feet per day and has stabilized at more than two million cubic feet a day.

A total of five wells (2.8 net) were drilled in the first quarter of 2009 with three successful (two net) natural gas wells in Pembina, one successful natural gas wells in Deep basin. As at March 31, 2009 four wells were being postponed for tie in awaiting the start of the Alberta government royalty relief program that provides for a 5% royalty rate for new wells brought on after April 1, 2009.

Production Revenue

Natural gas prices averaged CAD5.57 per mcf for the first quarter of 2009, down 31% compared to CAD8.12 per mcf in the year-ago quarter. Oil and liquids prices averaged CAD44.12 and CAD39.98 per barrel respectively for the first quarter of 2009 for a blended price of CAD40.64 per barrel, down 50% in the year-ago quarter blended oil and liquids price of CAD81.76 per barrel. Prices averaged CAD34.90 per boe for the first quarter of 2009, down 36% compared to CAD54.16 per boe in the year-ago quarter.

Revenue before results from hedging was down 24% in the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008 as volume raises were more than counterbalance by the decline in prices. An additional CAD0.60 per boe was realized from hedging gains during the quarter ended March 31, 2009 for total revenue of CAD35.50 per boe. In the quarter ended March 31, 2008 realized hedging gains were CAD0.41 per boe.

Royalties

Royalties averaged 24% of revenue for the first quarter of 2009, compared to 23% in the year-ago quarter. The Alberta government new royalty framework royalties took effect on January 1, 2009 which combined with still high natural gas reference prices from December 2008 and January 2009 resulted in high royalty rates in January and February.

Royalties have also trended higher on a percentage of revenue basis as a significant number of high rate wells have been brought on stream in 2008 and early 2009 which attract higher royalty rates. With natural gas prices in the CAD4 range, royalties are expected to trend less than 20%. Lower natural gas and liquids prices offset the volume based royalty increase such that overall% royalties have shown little change.

Royalty expense of CAD3.4 million was recorded in the first quarter of 2009, down 19% compared in the year-ago quarter because of overall lower revenue as higher production volume was offset by lower prices.

Production Expenses

Production expenses were CAD7.58 per boe for the first quarter of 2009, down 9% compared to CAD8.30 per boe in the year-ago quarter. Costs in 2009 have trended lower as higher volumes have improved economies of scale and a concentrated effort to decrease field operation costs.

On March 1, 2009 Berens Energy took over operations on 20 wells that were operated by third parties and has been able to reduce operating costs on these wells compared to the historical contract operating fees. With continuing volume increases and cost management, it is anticipated per unit operating expenses will remain in the CAD7.60 per boe range for the remainder of the year.

Production expenses for the first quarter of 2009 were CAD3.1 million, up 8% compared to in the year-ago quarter because of higher volumes partly counterbalanced by lower per unit costs

Transportation costs decreased 2% for the first quarter of 2009 compared for the first quarter of 2009 because of higher volume counterbalanced by lower per unit costs.

Operating Netback:

Operating netback represents the margin realized by the production and sale of petroleum and natural gas exclusive of results from hedging. First quarter 2009 operating netbacks declined because of lower per boe prices offset partly by lower operating and transportation costs.

General and Administrative Expenses

For the first quarter of 2009 general and administrative (G&A) expenses were CAD1.4 million, up 17% compared to the quarter ended March 31, 2008. Higher salaries account for the majority of the increase. G&A charged to partners on capital spending in the first quarter of 2009 was lower than in the first quarter of 2008 as wells are being drilled at higher average working interest than in the prior period.

Stock based compensation declined in the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008 as average option prices have declined due to a lower Berens Energy’s common share price.

On a per unit basis, for the first quarter of 2009 per unit G&A costs were CAD3.89 per boe, down 5% from CAD4.09 per boe in the year-ago quarter as volume raises more than equalized the dollar increase in costs for the per unit calculation. There were no general and administrative costs capitalized for the quarters ended March 31, 2009 or 2008. Staff levels are expected to remain fairly constant in 2009.

Interest Expense

For the first quarter of 2009 interest expense was CAD0.6 million, down 38% compared to CAD0.9 million in the year-ago quarter. Average amounts drawn on the bank operating line in the first quarter of 2009 were similar to the year-ago quarter as Berens Energy has continued to limit its capital spending to be in line with cash flow.

Interest rates have declined significantly in the first quarter of 2009 compared to 2008 as recessionary forces have resulted in lower interest rates. On a per unit basis, interest rates have decreased 47% as production volume has risen as average debt levels have remained basically unchanged.

Depletion, Amortization and Accretion

In the quarter ended March 31, 2009 depletion, amortization and accretion (DA&A) totaled CAD9.1 million (CAD22.15 per boe) up 2% compared to CAD8.9 million (CAD25.67 per boe) in the year- ago quarter. The per unit depletion rate declined 14% comparing the first quarter of 2009 to the first quarter of 2008 as ongoing drilling success and low cost reserve additions have brought down per unit DA&A rates consistently since the beginning of 2007.

Income Taxes

Berens Energy does not anticipate paying current income tax during 2009 as there are sufficient capital cost pools and expected future capital spending to shelter taxable income.

Capital Costs:

For the first quarter of 2009 CAD11.4 million in capital costs on exploration and production activities were incurred compared to CAD11.6 million in the year-ago quarter. Five wells (2.8 net) wells were drilled in the year-ago quarter compared to nine wells (4.7 net) net wells in the first quarter of 2008. Included in the first quarter 2009 drilling were two (one net) horizontal wells which incur higher costs to drill and complete than vertical wells.

The non-core Karr asset was sold in the first quarter of 2009 for CAD1.5 million to take advantage of opportunities to high grade the asset base and focus on the three core areas. At the time of sale, Karr production was 32 boe per day. Net of the disposition, capital costs were CAD9.8 million for the first quarter of 2009.