Bow Valley, Partners Hit Oil Pay on North Slope

Bow Valley Energy Ltd. and its joint venture partners--Brooks Range Petroleum Corp. (BRPC, operator), AVCG, LLC, TG World Energy Corp., and Ramshorn Investments, Inc.—late Wednesday announced 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 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 opportunity.

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.