Bowood Energy Inc.
TSX VENTURE : BWD

Bowood Energy Inc.

January 23, 2012 07:00 ET

Bowood Energy Inc. Announces Bakken Well Operational Results at Kipp and Spring Coulee

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2012) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") provides the following operational update on current activity in the southern Alberta Bakken Fairway.

Blood/Kipp Exploration well at 8-30-8-23 W4

Bowood is pleased to report that the Company's second Alberta Bakken test well located at Kipp, started production in December 2011. This well is located on the Blood First Nation Reserve. We have yet to establish a stabilized production rate due to the high pressure, multiphase influx of oil, water, and gas which has hampered pump performance during this early stage of production. The Company expects these issues are now largely resolved as the well continues to clean up and expects that production will start to increase with better pumping efficiency. The following is a summary of Kipp well operations to date:

  1. After fracture stimulation (which occurred from Oct 25th to 29th, 2011), and subsequent flow back of completion fluid, the well was shut in for three weeks to record a static bottom hole pressure. The pressure data and the extrapolated pressure gradient confirm that the formation is over-pressured as expected.
  2. Despite the fact that the early production operations at Kipp have been delayed, between the post frac clean up, the initial equipping operation and the first two weeks of intermittent production the well has recovered over 5,000 bbls of light, oil and approximately 50% of injected load water.
  3. A comparison of public data on industry wells indicates that based on early cumulative production, the Kipp well appears to have the potential to be a one of the better wells in the play to date.

Spring Coulee Exploration well at 2-36-3-23 W4

At Spring Coulee, the Company's first Alberta Bakken test well has been on production for approximately three months. This exploration well confirmed two important criteria in establishing commercial unconventional oil production in the area. The first is that the area is over pressured, and the second is that the area is optimally located for peak oil generation, based on core results.

The Spring Coulee well has now produced approximately 2,500 bbls of oil since it was fracture stimulated and approximately 60% of injected load water has been recovered. The Company believes that the modest inflow is attributable to the inability to effectively fracture stimulate the well due to mechanical difficulties encountered in the wellbore during completion operations coupled with the low permeability of the formation. Since the Spring Coulee well encountered the light oil and over-pressured part of the fairway, the next steps to establishing commerciality at Spring Coulee will be to determine optimal stratigraphic placement of the horizontal well path in the multiple formations that make up the Bakken Petroleum System, and to establish an effective fracture stimulation program. The Company continues to believe that this area of the fairway is highly prospective for both the Alberta Bakken and the Second White Specks oil plays.

About Bowood Energy Inc.

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. Current projects are in the Province of Alberta.

Reader Advisories

Forward-Looking Statements: Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. All statements other than statements of historical fact contained in this news release are forward-looking statements. Readers can identify many of these statements by looking for words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward-looking information in this press release includes, among other things, information relating to: (i) expectations regarding the Company's production results in its properties; (ii) expectations relating to the Company's financial position and its ability to access capital (iii) expectations regarding the Company's production rates, (iv) expectations regarding the completion and evaluation of the Company's wells; and (v) expectations regarding the spudding and drilling of new wells, including the timing of such activities.

The forward-looking statements included in this press release 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. 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. Readers are cautioned that the foregoing list of factors is not exhaustive. 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, 2010, on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). 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: http://www.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.

Contact Information