Bowood Reports 2010 Second Quarter Results, Provides Operational and Alberta Bakken Update
August 27 2010 - 9:29AM
Marketwired Canada
Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") announces its
financial and operational results for the three months ended June 30, 2010.
The Company will file its unaudited Financial Statements and related Management
Discussion and Analysis ("MD & A") for the three months ended June 30, 2010 with
the Canadian securities regulatory authorities on SEDAR. An electronic copy of
these materials will be available under Bowood's issuer profile on SEDAR at
www.sedar.com and on the Company's website at www.bowoodenergy.ca.
FINANCIAL AND OPERATING HIGHLIGHTS
Certain selected financial and operational information for the three months
ended June 30, 2010 is set out below and should be read in conjunction with the
Company's Financial Statements and MD & A.
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Three Months Ended June Six Months Ended June 30,
Financial Highlights 30, 2010 2010
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(all amounts in Cdn $
except common share
data)
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Petroleum and natural
gas revenue 1,325,392 2,960,387
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Per share - basic 0.007 0.016
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- diluted 0.007 0.016
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Funds flow from
operations (65,661) 491,630
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Per share - basic (0.000) 0.003
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- diluted (0.000) 0.003
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Net income (1,616,200) (1,424,580)
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Per share - basic (0.009) (0.008)
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- diluted (0.009) (0.008)
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Capital expenditures 1,692,868 2,239,208
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Net debt (excluding
fixed commodity 2,941,939 2,941,939
contracts)
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Shareholders' equity 23,560,301 23,560,301
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Total assets 34,358,946 34,358,946
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Common share data:
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Weighted average
basic 186,233,373 186,233,373
----------------------------------------------------------------------------
Fully diluted
shares outstanding 202,353,373 202,353,373
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Issued and
outstanding 186,233,373 186,233,373
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Three Months Ended June Six Months Ended June 30,
Operating Highlights 30, 2010 2010
----------------------------------------------------------------------------
(6:1 boe conversion)
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Average daily
production
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Natural gas (mcf/d) 2,890 3,153
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Liquids (Oil &
NGLs) (bbls/d) 47 33
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Oil equivalent
(boe/d) 528 558
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Average sales price
(including fixed
commodity
contracts):
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Natural gas ($/mcf) 3.91 4.70
----------------------------------------------------------------------------
Liquids (Oil &
NGLs) ($/bbl) 68.27 68.18
----------------------------------------------------------------------------
Oil equivalent
($/boe) 27.42 30.57
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Operating cost
($/boe) (15.79) (13.31)
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Operating netback
($/boe) (including
fixed commodity 8.66 14.93
contracts)
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Wells drilled - gross
(net):
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Gas 1 (0.60) 2 (0.80)
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Oil - 1 (0.60)
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Suspended - -
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D & A - -
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Total 1 (0.60) 3 (1.4)
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1. Funds flow from operations and Operating Netbacks as presented do not
have any standardized meaning under Canadian GAAP. Please refer to the
Non-GAAP Measures section of the MD & A for more details.
Due to an early spring breakup, coupled with road bans and severe weather in
southern Alberta, Bowood's operational activities were negatively impacted
during the second quarter of 2010. Weather related downtime at third party
processing facilities at our Chinook operations accounted for virtually the
entire 60 boe/day drop in production from the first quarter. The unseasonably
wet weather extended into the third quarter and has continued to provide
operating challenges and we have decided to defer activities until ground and
weather conditions were more favorable.
During the second quarter of 2010 Bowood drilled 1 (0.6 net) well in the greater
Armada area of southern Alberta. This well has been cased and is prospective for
hydrocarbons in two separate formations. Completion and testing operations on
this well, and on a second well at Armada which was cased in the first quarter
of 2010, are ongoing. We expect to have these wells on production by the end of
the third quarter.
Bowood has a capital budget of approximately $2.0 million for the remainder of
2010 to be primarily directed towards the drilling of 3 wells in the Company's
southern Alberta area. These capital expenditures are expected to be funded from
cash flow and available bank lines.
ALBERTA BAKKEN
During the second quarter of 2010, Bowood continued to strategically add to its
land position in the southern Alberta "Bakken" play. The Company now holds
approximately 39,000 net acres (15,600 net hectares) or 60 sections of all P&NG
rights, which we believe are on trend and highly prospective for
Devonian-Mississippian (Bakken equivalent) oil potential. These lands are
located in the McIntyre, Magrath and greater Lethbridge areas.
The Alberta Basin Bakken is an emerging oil resource play which was initiated in
Montana and is continuing into southern Alberta. To-date in 2010 there has been
strong interest in Alberta Crown Land sales in the area, with industry spending
over $108 million at public land offerings. In addition to the recent drilling
activity in the Alberta Basin of the northern United States, wells have now been
licensed in Alberta for the Bakken formation.
During the upcoming quarters, Bowood expects to expand its position in the area
and planning is underway for test wells to evaluate the potential of this oil
resource play.
About Bowood Energy Inc.
With operations based in Calgary, Alberta, Bowood Energy Inc. is a TSX-V Tier 2
corporation. Through its wholly owned subsidiary, Bowood Energy Ltd., the
Company is engaged in the acquisition, exploration, development, and production
of oil and gas resources. Projects are currently situated in the Provinces of
Alberta and Saskatchewan.
Bowood Energy Inc.
Robert Mercier, President & CEO
Reader Advisories
Forward-Looking Statements: This news release contains certain forward-looking
statements, including but not limited to, management's assessment of future
plans and operations, capital expenditures and the sources and timing thereof,
expected timing and results from operations, expected prospectivity of recent
land acquisitions, and expectations regarding expansion of the Company's land
position. These forward looking statements involve substantial known and unknown
risks, uncertainties and assumptions, certain of which are beyond the Company's
control. Such risks, uncertainties and assumptions include, without limitation,
those associated with oil and gas exploration, development, exploitation,
production, marketing, processing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling rigs and other services, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations (including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the final
valuations thereof, and obtaining required approvals of regulatory authorities.
Readers are cautioned that the foregoing list of factors is not exhaustive.
The Company's actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if any
of them do so, what benefits that the Company will derive there from. Additional
information on these and other factors that could affect the Company's
operations and financial results are included in reports, including the
Company's annual information form for the financial year ended December 31,
2009, on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). All subsequent
forward-looking statements, whether written or oral, attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by
these cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and
the Company does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable
securities laws.
BOE may be misleading, particularly if used in isolation. A BOE conversion of 6
Mcf: 1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.
For more information on Bowood Energy Inc. (TSX VENTURE:BWD) and to see the
updated corporate presentation please visit our website at:
http://www.bowoodenergy.ca or contact the persons listed below.
You may also request additional information by emailing info@bowoodenergy.ca.
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