The TSX Venture Exchange has accepted for filing documentation pursuantto the lease agreement between Bowood Energy Inc. and Kainaiwa ResourcesInc. whereby Bowood will acquire a five-year term lease in 94.75contiguous sections of lands located within the Blood Tribe First Nationreserve in Southern Alberta. Under the terms of the agreement, thecompany will pay an initial cash consideration of $14,128,000 and$121,280 on an annual basis for the next five years.
The company has also agreed to allow the Blood Tribe or its nominee theoption to elect to participate for a 20-per-cent working interest in anywell on the property in advance of the drilling of such well. If theBlood Tribe or its nominee elects not to participate in such well, theBlood Tribe or its nominee shall be entitled to a 20-per-cent workinginterest in such well once the company has recovered 200 per cent of thetotal capital cost associated with such well.
This transaction was disclosed in the company's news release dated Oct. 25, 2010.