Bow Valley Energy Ltd. announces first oil production from Blane field development, North Sea



    CALGARY, Sept. 12 /CNW/ - Bow Valley Energy Ltd. (TSX - BVX) is pleased
to announce that the Blane field in the North Sea commenced first oil
production on September 12, 2007. Bow Valley Petroleum (UK) Limited, a
wholly-owned subsidiary of Bow Valley Energy Ltd., owns a 12.5% unitized
working interest in the Talisman Energy (UK) Limited operated field.
    The Blane field is located 160 miles east of Aberdeen and straddles the
U.K. and Norwegian sectors of the North Sea in UKCS Block 30/3a and NCS Block
1/2 (unitized at 82% and 18%, respectively).
    The Blane field was discovered in 1989. Bow Valley Energy purchased an
equity interest in the field in 1997 and has worked with the ownership group
to develop this cross median field discovery since that time. The joint
venture group drilled two horizontal development wells in 2006, which are
expected to produce at a peak rate of 17,000 boe/d (2,125 boe/d net). An
injection well is expected to be drilled in the fourth quarter of 2007. Blane
production will be transported to and processed at the BP operated Ula
facility, 21 miles to the northeast of the Blane field and oil will be
exported through the Norpipe pipeline network to Teeside, U.K. Natural gas
sales will occur at the Ula offshore platform.
    R.G. Moffat, President and Chief Executive Officer of Bow Valley, said
"We are pleased to have reached first oil production from the Blane field,
representing Bow Valley's third successful field development in the U.K. North
Sea. With three fields now on production, and when the Blane field reaches
full capacity, Bow Valley's total net U.K. production should be approximately
4,500 boe/d. Each of the fields produce light, high quality oil which
typically receives a premium pricing to Brent crude. During the first half of
2007, Bow Valley reported a net field operating income of $52.83 per boe from
its U.K. production.
    The Company is further encouraged with the status of additional field
developments in which Bow Valley has an interest. The Chestnut field is
currently scheduled to commence production near year-end 2007, the Ettrick
field is scheduled for mid-2008 and a development plan for the Peik field is
being prepared. The cumulative effect of these field developments is creating
a diversified production base providing reliable revenues, cash flows and
earnings.
    The Company's strategy is to re-invest its cash flow into an active
exploration program. An exploration well on UKCS block 20/2a (Bow Valley 12%)
and another on UKCS block 9/28b (Bow Valley 75% - operator) are both scheduled
to be drilled in the fourth quarter 2007. Additional exploration is planned
into 2008 including a well on UKCS block 16/27aNorth and a multi-well program
on the North Slope of Alaska."

    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.

    Additional information relating to Bow Valley may be found on the SEDAR
website at www.sedar.com.

    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 = 1 boe). This
conversion ratio is the convention used in the oil and natural gas industry
and is based on an energy equivalent conversion method primarily applicable at
the burner tip and does not represent a value equivalent at the wellhead. The
use of boe's may be misleading, particularly if used in isolation.

    %SEDAR: 00008379E




For further information:

For further information: Bow Valley Energy Ltd., Robert G. Moffat,
President and Chief Executive Officer; Matthew L. Janisch, Vice President
Finance & Chief Financial Officer, Phone (403) 232-0292, website:
www.bvenergy.com

Organization Profile

BOW VALLEY ENERGY LTD.

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