Bow Valley Energy Ltd.

Bow Valley Energy Ltd.

November 20, 2006 16:33 ET

Bow Valley Energy Ltd.-Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 20, 2006) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Bow Valley Energy Ltd. ("Bow Valley")(TSX:BVX) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and FirstEnergy Capital Corp., to issue on a bought deal basis by way of a short form prospectus, 2,900,000 common shares (the "Common Shares") at a price of $5.85 per Common Share for gross proceeds of $16,965,000. The offering is expected to close on or about December 11, 2006 and is subject to Bow Valley receiving all necessary regulatory approvals.

Proceeds from the offering will be used to fund Bow Valley's capital expenditure commitments related to the previously announced Alaskan joint venture and for general corporate purposes.

Bow Valley is an oil and natural gas exploration, development and production company with operations in western Canada, Alaska and the U.K. sector of the North Sea. The common shares of Bow Valley trade on the Toronto Stock Exchange under the symbol BVX.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Bow Valley Energy Ltd.
    Mr. Robert Moffat
    President and CEO
    (403) 232-0292
    Bow Valley Energy Ltd.
    Mr. Matt Janisch
    VP Finance & CFO
    (403) 232-0292