Bow Valley Energy Ltd.
TSX : BVX

Bow Valley Energy Ltd.

September 30, 2005 09:06 ET

Bow Valley Energy Ltd. to Complete Brokered Private Placement Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 30, 2005) - Bow Valley Energy Ltd. (TSX:BVX) announced today that it intends to issue, on an underwritten private placement basis, 3,000,000 common shares at a price of $5.60 per common share and 700,000 common shares on a "flow-through" basis at a price of $7.15 per flow-through share for gross proceeds of $21,805,000. Bow Valley has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including BMO Nesbitt Burns Inc., Fraser Mackenzie Limited and Maison Placements Canada Inc. for the sale of the common shares and flow-through shares.

The proceeds of the equity issue will be used for general corporate purposes, including funding increased exploration activities in the North Sea and evaluating the recently acquired exploration blocks. In Canada, the funds will be used to finance an active winter drilling program. Bow Valley expects to spend approximately $100 million in 2006 (U.K. $60 million, Canada $40 million), an increase from the 2005 budget of $45 million. The completion of the offering is subject to Bow Valley receiving all necessary regulatory approvals. Closing of the offering is expected to occur on or about October 18, 2005.

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

Additional information relating to Bow Valley Energy Ltd. may be found on the SEDAR website at www.sedar.com.

This press release does not constitute an offer to sell the securities in the United States. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

Contact Information

  • Bow Valley Energy Ltd.
    Robert G. Moffat
    President and Chief Executive Officer
    (403) 232-0292
    or
    Bow Valley Energy Ltd.
    Matthew L. Janisch
    Vice President Finance and Chief Financial Officer
    (403) 232-0292
    Website: www.bvenergy.com