CALGARY, June 10 /CNW/ - Bow Valley Energy Ltd. ("Bow Valley") (TSX -
BVX) announced today that the Toronto Stock Exchange (the "TSX") has accepted
its notice of intention to make a normal course issuer bid. Under the terms of
its normal course issuer bid, Bow Valley may purchase up to 7,631,574 common
shares, representing approximately 8.8% of the common shares issued and
outstanding as of May 31, 2008. Any common shares acquired by Bow Valley under
the normal course issuer bid will be purchased on the open market through the
facilities of the TSX at the prevailing market price at the time of
acquisition in accordance with the rules and policies of the TSX. Common
shares purchased by Bow Valley will be cancelled.
Purchases under Bow Valley's normal course issuer bid may commence on
June 13, 2008 and will terminate on June 12, 2009 or on such earlier date as
Bow Valley may complete its permitted purchases pursuant to its notice of
intention filed with the TSX. Bow Valley has not previously entered into a
normal course issuer bid.
Bow Valley's board of directors believes that from time to time the
common shares are undervalued by the market. Bow Valley believes that
acquiring common shares under a normal course issuer bid is an attractive
investment and a suitable use of corporate funds.
As of May 31, 2008, there were 86,135,061 common shares issued and
outstanding. A total of 76,315,742 common shares (the "public float") are held
by shareholders other than directors and senior officers of Bow Valley. Bow
Valley is authorized to purchase up to 10% of the public float under the terms
of its normal course issuer bid. The average daily trading volume of the
common shares on the TSX for the most recently completed six months was
362,862 common shares.
R.G. Moffat, President and Chief Executive Officer of Bow Valley stated:
"Bow Valley has a full exploration and development program that can be funded
from forecast cash flows. With commodity prices continuing to run at high
levels, Bow Valley is forecasting surplus cash flows which we can allocate
toward debt repayment and/or the proposed share buyback program. Management
believes that the current price of Bow Valley shares represents exceptional
value and the current market conditions present a unique opportunity to build
shareholder value from a balanced allocation of capital."
Bow Valley is an oil and natural gas exploration, development and
production company with operations in the U.K. sector of the North Sea and in
Alaska. The common shares of Bow Valley trade on the TSX 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", "forecast", "plan", "intend", "estimate", "propose", or
similar words suggesting future outcomes or statements regarding an outlook.
Although Bow Valley 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 Bow Valley 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 Bow Valley 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 Bow Valley 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
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: