CALGARY, March 4 /CNW/ - Bow Valley Energy Ltd. (TSX -BVX) announces an
update on its Alaska and U.K. exploration activities.
On the North Slope of Alaska, the Tofkat No. 1 exploration well (Bow
Valley 20% working interest) has reached total depth at 7,703 feet TVD (13,174
feet measured depth). The well encountered several zones which indicated
hydrocarbon potential. These zones will be evaluated through logging and
testing. A decision has been made to side track the well for appraisal after
initial logging and testing is completed. More information is expected to be
available by the end of March, 2008.
The 16/27a-8 exploration well, operated by Bow Valley Petroleum (UK)
Limited (70%), was drilled to a total measured depth of 11,838 feet (7,211
feet TVD ss). The deviated well penetrated a series of highly permeable Eocene
limestone sections and sandstone channels, but did not encounter hydrocarbons.
The well is being abandoned and the rig will be released shortly.
Block 16/27a contains prospectivity in multiple zones including the
Eocene, Paleocene, Jurassic and Triassic formations. The 16/27a-8 well is a
shallow well which only evaluated the Eocene formation. Since these multiple
prospects are not all juxtaposed to a single drilling location, further
drilling on 16/27a is anticipated which will be designed to evaluate the
remaining prospectivity of the block.
Elsewhere in the North Sea, Bow Valley (12%) will shortly participate in
the drilling of the Blackbird prospect close to the Ettrick field development.
Bow Valley has also committed to a drilling rig to drill one exploration well
on Block 22/11b in the second half of 2008. Block 22/11b is currently owned by
Bow Valley at a 100% working interest but the Company anticipates finding a
partner to join in the drilling of this well.
R. G. Moffat, President and CEO of Bow Valley stated: "Although lack of
early success in our U.K. exploration program is disappointing, we see
significant exploration potential remaining on Block 16/27a in addition to our
continuing exploration elsewhere. We are committed to a multi-well, multi-year
exploration program funded out of cash flow. We expect to participate in two
more exploration wells in the North Sea over the next six months and are
working on plans to participate in additional wells through the remainder of
the year and into 2009. We are excited about the potential of the Tofkat well
in Alaska. Further evaluation is necessary before we draw any conclusion;
however these early indications are very promising."
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.
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 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.
For further information:
For further information: Bow Valley Energy Ltd.: R.G. Moffat, President
and CEO or M.L. Janisch, Vice President Finance and CFO, Phone (403) 232-0292,