CALGARY, ALBERTA--(Marketwire - Aug. 25, 2011) -
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.
Bowood Energy Inc. ("Bowood" or the "Company") (TSX VENTURE:BWD) is pleased to announce its financial and operational results for the three months ended June 30, 2011 and to provide an operational update on current activity. The unaudited Financial Statements and related Management Discussion and Analysis ("MD & A") will be filed with the Canadian securities regulatory authorities on SEDAR. An electronic copy of these materials will also be available under Bowood's issuer profile on SEDAR at www.sedar.com and on the Company's website at www.bowoodenergy.ca.
In the Southern Alberta Bakken, the initial well at Spring Coulee, which was spudded in March, is now completed. The planned water based fracture stimulations are now complete (20 stages) and flowback of frac fluids has commenced. Light oil has been recovered along with frac water during the flow back operations to date. Accelerated flow back is anticipated once the well can be equipped with tubing which is expected shortly. At present the well has recovered approximately forty five percent of the frac fluid. The Company hopes to have extended production test results on the well by early October.
The second Alberta Bakken test well for the Company at Kipp 8- 30-8-23 W4, on the Blood Reserve, commenced drilling in July. The pilot hole, which included two separate cored intervals, has now been drilled to a measured depth of 2,395 mKb and plugged back to begin drilling the horizontal section of the well. The Kipp well is licenced to a projected total depth of 3,658 meters which includes a minimum horizontal section of 1,200 meters. Testing of the well is expected in the fourth quarter of 2011.
In the Company's other core area at Armada, a two well drilling program was delayed until the end of June as a result of unusually wet weather, postponing associated production additions. Q2 production of 431 boe/d was negatively impacted by this delay, as well as the required shut in of the 2-1-17-19w4 oil well which was awaiting approval from the Energy Resources Conservation Board for Good Production Practice ("GPP"). The GPP approval has now been received and the well was subsequently re-activated in late July. Since being reactivated, the well has produced at approximately 220 boe/d (78 boe/d net), approximately 85% of which is light oil.
Completion results on the two newly drilled wells at Armada include a gas well (8-3-17-19W4) in which Bowood has a 90% working interest. The well began production in mid August. The August field estimate for the Company's total production is 520 boe/d.
Company net acreage at June 30, 2011 in the Alberta Bakken fairway was 104,000 acres. The Company has the financial ability to continue to develop its position in the Alberta Bakken fairway. At the end of Q2, 2011 Bowood had $2.3 MM in net cash and an additional $8.5 MM of capacity in an undrawn credit facility through the Canadian Western Bank. The majority of the $2.9 MM of capital expenditures in Q2 was focused on land, seismic and drilling activity in the Alberta Bakken play.