Block 9/15a contains a portion of the Peik field, an undeveloped natural gas/condensate field discovered in 1985. The interests being acquired contain probable reserves of approximately 13.0 million boe net to Bow Valley. The Company intends to work with the operator and partners toward unitizing the field and preparing a field development plan, potentially within the next twelve months and develop the field toward first production in the 2009-2010 time frame.
R.G. Moffat, President and CEO of Bow Valley stated: "The Peik acquisition is strategic in the Company's business plan in building an increasing production profile from a low-risk development portfolio. The Peik acquisition represents the seventh field development in the U.K. North Sea in which the Company is involved. The reserves associated with the Peik acquisition will replace the recently announced sale of Canadian reserves by approximately three-fold. The forecast Peik production combined with Bow Valley's other assets should provide Bow Valley with a steady, reliable, and increasing production, revenue and cash flow stream into 2010."
The acquisition of the Peik Assets was partially financed by a bought deal short form prospectus offering of 11 million subscription receipts of the Company at a price of $5.95 per subscription receipt for gross proceeds of $65.45 million. The remaining portion of the purchase price was financed through a new (pnds stlg)17.5 million term debt facility with Bank of Scotland.
Bow Valley Energy Ltd. is an international 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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