/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, April 5 /CNW/ - Bow Valley Energy Ltd. (the "Company") (TSX -
BVX) announced today that it has closed its bought deal short form prospectus
offering of 11 million subscription receipts at a price of $5.95 per
subscription receipt for aggregate gross proceeds of $65,450,000. The majority
of the net proceeds from the offering will be used to fund a portion of the
purchase price of the Company's previously announced acquisition of assets in
the U.K. North Sea and may be used to fund the Company's exploration
activities in the U.K. and Alaska and to fund capital expenditures in Canada.
The remaining portion of the purchase price of the acquisition will be funded
through the Company's credit facilities.
Each subscription receipt entitles the holder thereof to receive, without
payment of additional consideration, one class "A" common share of the Company
upon closing of the acquisition, which is expected to occur before the end of
May 2007. The offering of subscription receipts was sold to a syndicate of
underwriters led by BMO Nesbitt Burns Inc. and included FirstEnergy Capital
Corp., Scotia Capital Inc. National Bank Financial Inc., Raymond James Ltd.,
Tristone Capital Inc., Blackmont Capital Inc., Fraser MacKenzie Limited,
Maison Placements Canada Inc. and Octagon Capital Corporation.
The subscription receipts trade on the Toronto Stock Exchange under the
Bow Valley is an oil and natural gas exploration, development and
production company with operations in western Canada, Alaska and the U.K.
sector of the North Sea. The common shares of Bow Valley trade on the Toronto
Stock Exchange under the symbol BVX.
Additional information relating to Bow Valley Energy Ltd. may be found on
the SEDAR website at www.sedar.com.
This press release does not constitute an offer to sell the securities in
the United States. The securities offered have not and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws, and may not be offered or sold
in the United States except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and applicable state
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.
For further information:
For further information: Bow Valley Energy Ltd., Robert G. Moffat,
President and Chief Executive Officer, Matthew L. Janisch, Vice President,
Finance and Chief Financial Officer, Phone: (403) 232-0292, Website: