CALGARY, April 11 /CNW/ - Bow Valley Energy Ltd. (TSX - BVX) and its
joint venture partners Brooks Range Petroleum Corp ("BRPC" or "Operator"),
AVCG, LLC, TG World Energy Corp and Ramshorn Investments, Inc. are pleased to
announce the results of a two well exploration program on the North Slope of
Alaska resulting in one discovery and one dry hole. Bow Valley holds a twenty
percent (20%) working interest in the wells.
The North Shore No. 1 well was drilled to a final true vertical depth of
10,319 feet (13,309 feet measured depth) through the Ivishak sandstone. The
joint venture partners are in the process of casing the well as a potential
oil producer. The well is approximately 1,100 feet west of, and appears to be
comparable to, the 1974 Mobil Gwyder Bay South No. 1 well, which flowed at an
average rate of 2,263 bopd on production test from the same formation. The
potential size and economic viability of this discovery will be evaluated
using 3-D seismic data which the joint venture group acquired over the
prospect area during this winter season. A full testing program of the North
Shore No. 1 well will be undertaken during the 2008 winter season.
The Sak River No. 1 well was drilled to a final true vertical depth of
11,348 feet (13,110 feet measured depth), but did not encounter hydrocarbons.
The joint venture partners have suspended the well, pending further
evaluation, for the possibility of drilling an exploratory sidetrack during
the 2008 winter drilling season. Data gathered from this well will be
integrated with proprietary 3-D seismic to evaluate the sidetrack exploration
Robert G. Moffat, President and CEO of Bow Valley stated: "The early
success in the Alaska, North Slope, exploration program further confirms our
conviction of the tremendous opportunity that exists in our joint venture
lands. The partnership group is committed to the immediate evaluation and
potential development of this discovery. With these results and the continuing
multi-year, multi-well exploration program over approximately 300,000 (60,000
net) acres of mineral rights that the joint venture controls, I am more
confident that we will be able to build the Alaskan asset base into a
significant production and revenue contribution for Bow Valley."
Bow Valley Energy Ltd. 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 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 = 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.
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, www.bvenergy.com