Longbow Resources Inc.
TSX VENTURE : LBR

Longbow Resources Inc.

August 24, 2007 15:50 ET

Longbow Resources Provides Additional Information Regarding Purchase of Oil Properties

CALGARY, ALBERTA--(Marketwire - Aug. 24, 2007) - Longbow Resources Inc. (TSX VENTURE:LBR) ("Longbow" or the "Company") further reports in respect of its previously announced acquisition (by news release dated August 22, 2007) that the total purchase price of $8.2 million included bank financing of $4.9 million. This bank financing was arranged through a credit facility provided by a Canadian chartered bank. The Company has also entered into a hedging transaction by way of the purchase of one year put options based on 100 barrels of oil per day at a strike price of $70.00 US/bbl. The strategy provides some price protection without restricting the Company's upside if the price of oil exceeds $70.00 US/bbl.

According to the independent engineering report prepared by Sproule Associates Limited ("Sproule") for the acquired properties and made effective June 30, 2007, the proved reserves acquired consist of 462.6 Mbbl oil and 430 MMcf sales gas, which equates to 534.4 Mboe. These proved reserves are all classified as proved developed producing. The probable reserves acquired consist of 129.7 Mbbl oil and 134 MMcf sales gas which equates to 152.1 Mboe.

The net present value of $10.69 million referred to in the August 22nd news release is on a before tax basis and the price forecasts that formed the basis for the revenue projection and net present value were based on Sproule's May 31, 2007 pricing model. The net present value of the reserves presented in the August 22nd news release does not necessarily represent their current fair market value.

Management estimates that the horizontal wells, which are planned to be drilled on the Byemoor property, will cost approximately $1.25 million per well to drill and complete. The source of funding for this drilling is anticipated to come from the previously announced (by news release dated July 30, 2007) proposed financings for aggregate gross proceeds of $5 million.

Longbow is a junior oil and natural gas company based in Calgary, Alberta with properties located in Alberta, British Columbia and Saskatchewan.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information. 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 press release.

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