LongBow Energy Corp.

LongBow Energy Corp.

October 27, 2006 09:00 ET

LongBow Energy Corp. Closes Acquisition of 1009107 Alberta Ltd.

CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2006) - LongBow Energy Corp. (TSX VENTURE:LBV) ("LongBow") is pleased to announce that it has closed its acquisition transaction to acquire all of the issued and outstanding shares of 1009107 Alberta Ltd. ("1009107"), a wholly owned subsidiary resource company of the Watt Energy Limited Partnership II.

The properties owned by 1009107 represent non-operated working interests ranging from approximately 7% to 14% in a number of different plays across the Western Sedimentary Basin. The properties can be characterized as assets in the early stages of their life cycle with potential future development opportunities. The properties are currently producing approximately 31 boe/d (60% gas with 40% made up of oil and liquids) and at December 31, 2005 have proven reserves of 40.6 mboes and proven plus probable reserves of 72 mboes based on independent engineering evaluations.

The final purchase price for the common shares of 1009107 was $1,640,000 CAD, which was paid by LongBow by the transfer of 20,500,000 LongBow Common Shares ("LongBow Shares") at a deemed value of $0.08 per common share. Following the closing of the transaction, LongBow now has 125,715,734 LongBow Shares outstanding. The effective date of the transaction is 12:01 am on June 30, 2006.

Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • LongBow Energy Corp.
    Sean Kehoe
    (403) 233-6073
    (403) 269-2686 (FAX)