CALGARY, Feb. 27 /CNW/ - Bow Valley Energy Ltd. (TSX -BVX) announces an
update on its Alaska operations.
The North Shore No.1 well was re-entered by the Operator on January 10,
2008. The bottom of the original well was re-drilled in a sidetrack to
13,361 feet total depth ("TD"), to a location 153 feet offset from the
original bottom-hole location, and a 4.5" production liner was set to TD. The
Ivishak and Sag River formations were perforated before releasing the rig on
February 6, 2008.
The Ivishak Formation was subsequently tested using a Coiled Tubing Unit.
The 22 foot perforated zone near the top of the formation flowed for 5 hours
at a stable rate of 2,092 barrels of oil per day ("bopd") of 34 degree API
oil. The North Shore No.1 well is located 1,100 feet to the west of, and is
interpreted to be in the same Ivishak oil pool as, the Gwydyr Bay South No.1
well, which reportedly flowed at a rate of 2,263 bopd on a production test
conducted in 1974. For mechanical reasons, the Sag River formation has not
R. G. Moffat, President and CEO of Bow Valley stated: "We are encouraged
by the successful test of the Ivishak formation in the Northshore No.1 well.
Further upside is identified in the potential of the untested Sag River
formation and prospectivity identified in two similar, seismically defined,
structures in close proximity to the Northshore pool. A follow-up success in
either the Sag River test or in an offset drilling location will help
determine the commerciality of this prospect area."
Bow Valley Energy Ltd. is an oil and natural gas exploration, development
and production company with operations in Alaska 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.
Certain statements included or incorporated by reference in this news
release constitute forward-looking statements or forward-looking information
under applicable securities legislation. Forward-looking statements or
information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an outlook. Although the
Company believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed
on forward-looking statements because the Company can give no assurance that
such expectations will prove to be correct. Forward-looking statements or
information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and described in
the forward-looking statements or information. The forward-looking statements
or information contained in this news release are made as of the date hereof
and the Company undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. The forward looking statements or information contained in
this news release are expressly qualified by this cautionary statement.
Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil equivalent at six
thousand cubic feet to one barrel of oil equivalent (6 mcf equals 1 boe). This
conversion ratio is the conversion used in the oil and natural gas industry
and is based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the wellhead.
The use of boe's may be misleading, particularly if used in isolation.
For further information:
For further information: Bow Valley Energy Ltd., R.G. Moffat, President
and CEO or M.L. Janisch, Vice President Finance and CFO, Phone (403) 232-0292,