Bow Energy Acquires Stake in PL 15 from Mosaic Oil

Bow Energy has exercised its option with Mosaic Oil to earn 50% working interest in PL 15 (excluding the Boxleigh Field and Boxleigh North-1 well sub blocks) by funding the drilling and casing of a PL 15 well within 12 months of today's exercise date. Mosaic will be free carried for the drilling of the well and will remain as Operator of PL 15.

Following a review of the prospectivity of PL 15 (Petroleum Lease) in the Surat-Bowen Basin in south east Queensland, Bow identified the Jawsone Prospect as its leading contender for drilling as the farm-in earning well. The Jawsone Prospect will target the oil potential in the Middle Triassic Showgrounds Sandstone.

Jawsone-1 is expected to be drilled in the first half of 2007.

This deal continues Mosaic's progressive farm-out strategy to accelerate exploration and production in its lease areas in Queensland's Surat-Bowen Basin, Australia.