Bowood Energy Inc.
TSX VENTURE : BWD

Bowood Energy Inc.

June 24, 2011 09:35 ET

Bowood Energy Inc. Reports 2011 First Quarter Results

CALGARY, ALBERTA--(Marketwire - June 24, 2011) -

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") is pleased to announce its financial and operational results for the three months ended March 31, 2011 and an operational update on current activity.

The Company will file its unaudited Financial Statements and related Management Discussion and Analysis ("MD & A") for the three months ended March 31, 2011 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 www.sedar.com and on the Company's website at www.bowoodenergy.ca.

FINANCIAL AND OPERATING HIGHLIGHTS

Certain selected financial and operational information for the three months ended March 31, 2011 is set out below and should be read in conjunction with Bowood's Financial Statements and MD & A. In Q1 2011, the Company successfully transitioned to International Financial Reporting Standards (IFRS). As such, all figures from January 1, 2011 onwards incorporate IFRS and comparative information for 2010 has been restated in accordance with IFRS.

Financial HighlightsThree Months Ended March 31
(all amounts in Cdn $ except common share data)20112010
Petroleum and natural gas revenue1,586,5641,634,996
Per share - basic0.0060.009
- diluted0.0050.009
Funds flow from operations314,314561,624
Per share - basic0.0010.003
- diluted0.0010.003
Net income (loss)(663,824)569,595
Per share - basic(0.002)0.001
- diluted(0.002)0.001
Capital expenditures1,564,134546,340
Net (cash) debt(4,428,561)(1,183,409)
Shareholders' equity48,537,09825,263,481
Total assets57,307,13636,278,046
Common share data:
Basic274,933,373186,233,373
Diluted290,253,373200,095,373
Operating HighlightsThree Months Ended March 31
(6:1 boe conversion)20112010
Average daily production
Natural gas (mcf/d)2,2903,419
Liquids (Oil & NGLs) (bbls/d)10919
Oil equivalent (boe/d)490589
Average sales price (including fixed commodity contracts):
Natural gas ($/mcf)3.965.39
Liquids (Oil & NGLs) ($/bbl)78.9267.97
Oil equivalent ($/boe)35.9733.48
Operating cost ($/boe)12.3211.06
Operating netback ($/boe) (including fixed commodity contracts)19.2920.68
Wells drilled - gross (net):
Gas0 (0.00)1 (0.20)
Oil0 (0.00)1 (0.60)
Suspended----
D & A----
Total0 (0.00)2 (0.80)

Bowood has improved its balance sheet on a quarter over quarter basis. At the end of Q1, 2011 Bowood had $4.4 MM in net cash and an additional $8.0 MM in an undrawn credit facility through the Canadian Western Bank. This improvement in its balance sheet provides the Company with the financial ability to continue to advance its position in the Alberta Bakken fairway.

ALBERTA BAKKEN FOCUS

Although Bowood's comparative production is lower than during Q1 2010, the Company has successfully increased its oil weighting resulting in higher operating netbacks, and comparable oil and gas revenues on a quarter by quarter basis.

Bowood continues to focus the majority of its capital expenditures on its strategic position in the Alberta Bakken fairway. The majority of the $1.56 MM of capital expenditures in Q1 2011 was focused on land, seismic and drilling activity in the play. Company net acreage at March 31, 2011 in the Alberta Bakken fairway was 102,000 acres.

The completion and evaluation of the Spring Coulee 3-36-3-23 W4 horizontal well is underway. Due to the exploratory nature of the well, multiple phases of fracture stimulation are being undertaken to better optimize job placement and fluid selection. This phased operation also necessitates specialized equipment and operational delays are not unusual in sourcing all of the required components to finish the completion.

The second test well for the Company in the Alberta Bakken fairway has now been licensed and is expected to begin drilling in July, 2011.

OPERATIONAL UPDATE

A new oil pool discovery well at Armada commenced production in Q1 2011 but has been shut in subsequent to the end of the first quarter as it has now completed its initial four month production period. During this period the Armada well was producing at 170 boe/d (60 boe/d net), however it is shut in awaiting the ERCB approval of Good Production Practice ("GPP"). The approval of this application for the pool will allow the well to resume production at unrestricted rates. The Company's estimated June production to date is approximately 425 boe/d, which reflects the shut in of the Armada well awaiting GPP approval. The Company is planning to drill two additional wells at Armada targeting new oil pools, however drilling has been delayed due to extremely wet spring weather. A rig has been contracted and the wells will spud as soon as lease conditions permit.

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. 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 Bakken properties; (ii) expectations regarding Energy Resources Conservation Board approvals for the Company's Amarda well; (iii) expectations regarding the Company's production rates, including production rates of the Amarda well; (iv) expectations regarding the completion and evaluation of the Company's Spring Coulee well; 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.

Bowood Energy Inc. was recognized as a TSX Venture 50® company in 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

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 or see contact information.

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