Icy Update: Bow Valley Drills in the North Sea and Alaska

Bow Valley Energy Ltd. 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."