Bow Valley Energy Ltd. announces first oil production from Chestnut field development, U.K. North Sea



    CALGARY, Sept. 22 /CNW/ - Bow Valley Energy Ltd. (TSX - BVX) is pleased
to announce that the Chestnut field in the U.K. North Sea commenced oil
production on September 20, 2008. Bow Valley Petroleum (UK) Limited, a
wholly-owned subsidiary of Bow Valley Energy Ltd., owns a 15.125% working
interest in Block 22/2a which contains the Chestnut field.
    The Chestnut field is located approximately 180 miles east of Aberdeen in
water depth of approximately 120m. Chestnut has been developed using the new
Sevan Hummingbird floating production storage and offloading unit ('FPSO').
The Sevan Hummingbird FPSO has a capacity to store 270,000 bbls. of oil, an
oil processing capacity of 30,000 barrels of oil per day and a water injection
capacity of 20,000 barrels per day.
    The joint venture group has developed the field with one horizontal oil
production well and one vertical water injection well. Initial production
volumes are expected to average approximately 10,000 (1,500 net) barrels of
oil per day. The joint venture group is also currently drilling an additional
appraisal/development well, which if successful, will add to the field's
productive capacity and booked reserves.
    Chestnut oil sales volumes will be offloaded and transported by shuttle
tanker.
    R.G. Moffat, President and CEO of Bow Valley, said: "We are pleased to
have reached this very important milestone for the Company. The Chestnut field
development represents the fourth such project that Bow Valley has
successfully completed in the UK North Sea. The Chestnut field development,
combined with our other producing properties at Kyle, Blane and Enoch will
result in a significant increase in production, revenue and cash flow.
Additional production is also forecast from the field development at Ettrick,
and two pre-sanction field developments at Peik and Blackbird. The success at
Chestnut is further confirmation of our business plan and ability to execute
on all of our ambitious projects."

    Bow Valley Energy Ltd. is an international oil and natural gas
exploration, development and production company with operations in the U.K.
sector of the North Sea and Alaska. 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. Such forward-looking statements or
information are provided for the purpose of providing information about
management's current expectations and plans relating to the future. Readers
are cautioned that reliance on such information may not be appropriate for
other purposes, such as making investment decisions. Forward-looking
statements or information typically contain statements with words such as
"anticipate", "believe", "expect", "plan", "intend", "estimate", "propose",
"project", "seek", "continue", "forecast", "may", "will", "potential",
"could", "should" or similar words suggesting future outcomes or statements
regarding an outlook. Forward-looking statements or information in this news
release include, but are not limited to, statements or information with
respect to: business strategy and objectives; development plans; exploration
plans; acquisition and disposition plans and the timing thereof; reserve
quantities and the discounted present value of future net cash flows from such
reserves; future production levels; capital expenditures; net revenue;
operating and other costs; royalty rates and taxes.
    Forward-looking statements or information are based on a number of
factors and assumptions that have been used to develop such statements and
information but which may prove to be incorrect. 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. In addition to other factors and
assumptions which may be identified in this news release, assumptions have
been made regarding, among other things: the effects of increasing
competition; the general stability of the economic and political environment
in which the Company operates; the timely receipt of any required regulatory
approvals; the ability of the Company to obtain qualified staff, equipment and
services in a timely and cost-efficient manner; the ability of the operator of
the projects which the Company has an interest in to operate the field in a
safe, efficient and effective manner; the ability of the Company to obtain
financing on acceptable terms; field production rates and decline rates; the
ability to replace and expand oil and natural gas reserves through
acquisition, development or exploration; the timing and costs of pipeline,
storage and facility construction and expansion and the ability of the Company
to secure adequate product transportation; future oil and natural gas prices;
currency, exchange and interest rates; the regulatory framework regarding
royalties, taxes and environmental matters in the countries in which the
Company operates; and the ability of the Company to successfully market its
oil and natural gas products. Readers are cautioned that the foregoing list is
not exhaustive of all factors and assumptions which may have been used.
    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. These risks and uncertainties which may cause actual results to
differ materially from the forward-looking statements or information include,
among other things: the ability of management to execute its business plan;
general economic and business conditions; the risk of war or instability
affecting countries in which the Company operates; the risks of the oil and
natural gas industry, such as operational risks in exploring for, developing
and producing crude oil and natural gas; market demand; the possibility that
government policies or laws may change or governmental approvals may be
delayed or withheld; risks and uncertainties involving geology of oil and
natural gas deposits; the uncertainty of reserves estimates and reserves life;
the ability of the Company to add production and reserves through acquisition,
development and exploration activities; the Company's ability to enter into or
renew leases; potential delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of estimates
and projections relating to production (including decline rates), costs and
expenses; fluctuations in oil and natural gas prices, foreign currency,
exchange, and interest rates; risks inherent in the Company's marketing
operations, including credit risk; uncertainty in amounts and timing of
royalty payments; health, safety and environmental risks; risks associated
with existing and potential future law suits and regulatory actions against
the Company; uncertainties as to the availability and cost of financing; and
financial risks affecting the value of the Company's investments. Readers are
cautioned that the foregoing list is not exhaustive of all possible risks and
uncertainties. Additional risk factors affecting the Company and its business
are contained in the Company's Annual Information Form filed on SEDAR at
www.sedar.com.
    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 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 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.

    %SEDAR: 00008379E




For further information:

For further information: Bow Valley Energy Ltd., Robert G. Moffat,
President and Chief Executive Officer, Phone (403) 232-0292, website:
www.bvenergy.com

Organization Profile

BOW VALLEY ENERGY LTD.

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