| December 7, 2010 |
| Bowood Announces Alberta Bakken Strategic Joint Venture and Farmout With Legacy Oil + Gas Inc. |
CALGARY, ALBERTA--(Marketwire - Dec. 7, 2010) - Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") is pleased to announce that it has entered into a strategic joint venture and farmout arrangement (the "Joint Venture") with Legacy Oil + Gas Inc. ("Legacy"), on Bowood's extensive Alberta Bakken acreage, consisting of approximately 183 sections (117,000 acres) of lands (the "Lands") located in southern Alberta.
Under the terms of the Joint Venture, Legacy will, through a combination of land equalization and drilling, have the ability to earn 50 percent of Bowood's entire interest in the Alberta Bakken fairway lands. Initially, Legacy will equalize into a portion of the Lands by providing a cash payment to Bowood of $8 million to purchase a 50 percent working interest in 33,280 acres (52 sections) of Lands (the "Acquired Lands"). The Acquired Lands consist of a mix of Crown and Freehold Lands which are not located on the Blood Tribe Reserve (the "Blood Tribe Lands").
On the remaining 131 gross sections of land (the "Farmout Lands"), including the 94.75 gross sections of Blood Tribe Lands, Legacy initially will drill two (2) horizontal Test Wells which will target the lower Banff, Exshaw/Bakken and Big Valley formations. The first Test Well will spud prior to March 31, 2011 and the second Test Well will be spud prior to August 31, 2011. One of the Test Wells will be located on the Blood Tribe Lands and the other will be located on the remaining non-Blood Lands. With each Test Well, Legacy will be responsible for 80 percent of the drilling and completions costs of such Test Well and and shall earn a 50 percent working interest in 8 sections of the Farmout Lands. Following the drilling of the two Test Wells, Legacy will have the right to continue earning in the Farmout Lands on a rolling option basis.
About Bowood Energy Inc.
With operations based in Calgary, Alberta, Bowood Energy Inc. is a TSX-V Tier 2 corporation. Through its wholly owned subsidiary, Bowood Energy Ltd., the Company is engaged in the acquisition, exploration, development, and production of oil and gas resources. Projects are currently situated in the Provinces of Alberta and Saskatchewan.
Bowood Energy Inc.
Robert Mercier, President & CEO
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Bowood in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.
Reader Advisories
Forward-Looking Statements: Certain information included in this press release constitutes forward-looking statements and information under applicable securities legislation. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, information with respect to: operational decisions and the timing thereof, development and exploration plans and the timing thereof; future production levels; the location and prospective nature of the lands; and, the anticipated benefits resulting from the transactions described in this press release. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Bowood believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Bowood can give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things: field production rates and decline rates; the ability of Bowood to secure adequate drilling and production services; the timely receipt of any required regulatory approvals; the ability of Bowood to obtain and retain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; Bowood's ability to operate the properties in a safe, efficient and effective manner; the ability of Bowood to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters; and the ability of Bowood to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Bowood and described in the forward-looking information. The material risk factors affecting Bowood and its business are contained in Bowood's Annual Information Form which is available under Bowood's issuer profile on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and Bowood undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
For more information on Bowood Energy Inc. (TSX VENTURE:BWD) and to see the updated corporate presentation please visit our website at: https://www.bowoodenergy.ca or contact the persons listed below.
You may also request additional information by emailing info@bowoodenergy.ca.
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 news release. |
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