Bowood Energy Inc.

Bowood Energy Inc.

August 27, 2010 09:29 ET

Bowood Reports 2010 Second Quarter Results, Provides Operational and Alberta Bakken Update

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2010) - Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") announces its financial and operational results for the three months ended June 30, 2010.

The Company will file its unaudited Financial Statements and related Management Discussion and Analysis ("MD & A") for the three months ended June 30, 2010 with the Canadian securities regulatory authorities on SEDAR. An electronic copy of these materials will be available under Bowood's issuer profile on SEDAR at and on the Company's website at


Certain selected financial and operational information for the three months ended June 30, 2010 is set out below and should be read in conjunction with the Company's Financial Statements and MD & A.

Financial Highlights Three Months Ended June 30, 2010 Six Months Ended June 30, 2010
(all amounts in Cdn $ except common share data)    
Petroleum and natural gas revenue 1,325,392   2,960,387  
  Per share - basic 0.007   0.016  
    - diluted 0.007   0.016  
Funds flow from operations (65,661 ) 491,630  
  Per share - basic (0.000 ) 0.003  
    - diluted (0.000 ) 0.003  
Net income (1,616,200 ) (1,424,580 )
  Per share - basic (0.009 ) (0.008 )
    - diluted (0.009 ) (0.008 )
Capital expenditures 1,692,868   2,239,208  
Net debt (excluding fixed commodity contracts) 2,941,939   2,941,939  
Shareholders' equity 23,560,301   23,560,301  
Total assets 34,358,946   34,358,946  
Common share data:        
  Weighted average basic 186,233,373   186,233,373  
  Fully diluted shares outstanding 202,353,373   202,353,373  
  Issued and outstanding 186,233,373   186,233,373  
Operating Highlights Three Months Ended June 30, 2010 Six Months Ended June 30, 2010
(6:1 boe conversion)        
Average daily production        
  Natural gas (mcf/d) 2,890   3,153  
  Liquids (Oil & NGLs) (bbls/d) 47   33  
  Oil equivalent (boe/d) 528   558  
Average sales price (including fixed commodity contracts):        
  Natural gas ($/mcf) 3.91   4.70  
  Liquids (Oil & NGLs) ($/bbl) 68.27   68.18  
  Oil equivalent ($/boe) 27.42   30.57  
Operating cost ($/boe) (15.79 ) (13.31 )
Operating netback ($/boe) (including fixed commodity contracts) 8.66   14.93  
Wells drilled - gross (net):        
  Gas 1 (0.60 ) 2 (0.80 )
  Oil --   1 (0.60 )
  Suspended --   --  
  D & A --   --  
  Total 1 (0.60 ) 3 (1.4 )
  1. Funds flow from operations and Operating Netbacks as presented do not have any standardized meaning under Canadian GAAP. Please refer to the Non-GAAP Measures section of the MD & A for more details.

Due to an early spring breakup, coupled with road bans and severe weather in southern Alberta, Bowood's operational activities were negatively impacted during the second quarter of 2010. Weather related downtime at third party processing facilities at our Chinook operations accounted for virtually the entire 60 boe/day drop in production from the first quarter. The unseasonably wet weather extended into the third quarter and has continued to provide operating challenges and we have decided to defer activities until ground and weather conditions were more favorable.

During the second quarter of 2010 Bowood drilled 1 (0.6 net) well in the greater Armada area of southern Alberta. This well has been cased and is prospective for hydrocarbons in two separate formations. Completion and testing operations on this well, and on a second well at Armada which was cased in the first quarter of 2010, are ongoing. We expect to have these wells on production by the end of the third quarter. 

Bowood has a capital budget of approximately $2.0 million for the remainder of 2010 to be primarily directed towards the drilling of 3 wells in the Company's southern Alberta area. These capital expenditures are expected to be funded from cash flow and available bank lines.


During the second quarter of 2010, Bowood continued to strategically add to its land position in the southern Alberta "Bakken" play. The Company now holds approximately 39,000 net acres (15,600 net hectares) or 60 sections of all P&NG rights, which we believe are on trend and highly prospective for Devonian-Mississippian (Bakken equivalent) oil potential. These lands are located in the McIntyre, Magrath and greater Lethbridge areas.

The Alberta Basin Bakken is an emerging oil resource play which was initiated in Montana and is continuing into southern Alberta. To-date in 2010 there has been strong interest in Alberta Crown Land sales in the area, with industry spending over $108 million at public land offerings. In addition to the recent drilling activity in the Alberta Basin of the northern United States, wells have now been licensed in Alberta for the Bakken formation.

During the upcoming quarters, Bowood expects to expand its position in the area and planning is underway for test wells to evaluate the potential of this oil resource play. 

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

Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking statements, including but not limited to, management's assessment of future plans and operations, capital expenditures and the sources and timing thereof, expected timing and results from operations, expected prospectivity of recent land acquisitions, and expectations regarding expansion of the Company's land position. These forward looking statements involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond the Company's control. Such risks, uncertainties and assumptions include, without limitation, those associated with oil and gas exploration, development, exploitation, production, marketing, processing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Readers are cautioned that the foregoing list of factors is not exhaustive. 

The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports, including the Company's annual information form for the financial year ended December 31, 2009, on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. 

BOE may be misleading, particularly if used in isolation. A BOE conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

For more information on Bowood Energy Inc. (TSX VENTURE:BWD) and to see the updated corporate presentation please visit our website at: or contact the persons listed below.

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