As a result of this review, the Company has entered into an agreement regarding the sale of its Canadian assets to a third party for a purchase price of C$74.25 million, subject to normal closing adjustments. The sale is effective April 1, 2007 and is expected to close on or about May 31, 2007. Cash proceeds from the sale will be used to retire Bow Valley Energy Ltd.'s Canadian debt, which at March 31, 2007 was estimated at C$26.6 million. The remainder of the net proceeds will be used to fund other international growth opportunities.
Tristone Capital Inc. acted as the Company's financial advisor for the transaction.
R.G. Moffat, President and CEO of Bow Valley commented, "The Canadian operations provided strong production and cash flow growth in the Company's early development but these assets now represent less than 15% of the Company's total proved plus probable reserves. With the significant growth of Bow Valley's international operations, the Canadian asset was no longer strategic in our business plan. The net proceeds generated from the sale of the Canadian assets are intended to fund future growth opportunities in Bow Valley's core operating areas of the U.K. North Sea and the North Slope of Alaska, both of which offer superior economic returns when compared to Canada."
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.
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