BWD Lgx Oil And Gas, Inc.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Bowood Energy Inc. ("Bowood" or the "Company") (TSX VENTURE:BWD) is pleased to
announce that it has entered into an agreement with Kainaiwa Resources Inc.
("KRI"), a corporation wholly-owned by the Blood Tribe First Nation ("Blood
Tribe") to acquire, through a leasing arrangement ("Lease"), an interest in
94.75 contiguous sections (60,640 acres) of lands located within the Blood Tribe
Reserve in southern Alberta.


The lands being acquired are strategically located in the emerging southern
Alberta Bakken play and the Company believes the lands are on trend and highly
prospective for Devonian-Mississippian (Bakken equivalent) oil potential and
other prospective formations. All of the lands contain the Devonian and
Mississippian rights (which includes the prospective Bakken, Three Forks and
Banff formations) and the majority of the lands include all petroleum and
natural gas rights with only a few (single) shallow zone exclusions.


The Lease will significantly add to Bowood's land position in the southern
Alberta Bakken fairway, where the Company will hold a 100% interest in
approximately 104,000 net acres (41,600 net hectares), or 162 sections.


In addition, Bowood is pleased to announce that it has filed a preliminary short
form prospectus in connection with a public offering of 60,000,000 to 80,000,000
subscription receipts (the "Subscription Receipts") at the price of $0.25 per
Subscription Receipt for gross proceeds of $15,000,000 to $20,000,000 (the
"Offering"). The Offering is co-led by GMP Securities L.P. and Haywood
Securities Inc. (the "Agents").


The Lease

The leasing arrangement will include a joint venture with the Blood Tribe and
this arrangement is a continuation of the Company's longstanding relationship
with the Blood Tribe. Since 2000, the Company's management team have been
working in partnership with the Blood Tribe and have successfully implemented a
number of joint ventures to develop resources on the Blood Tribe Reserve. The
Company is pleased to be able to continue and expand upon this relationship.


The Lease will have a 5 year term and is subject to mineral royalties
substantially similar to Alberta Crown royalties. In addition, Bowood will
commit to:




--  a total up front consideration of $14,128,000 
--  pay annual rent of $5.00/hectare, amounting to approximately $122,000
    per year 
--  drill one well to a minimum depth of 1,000 metres in each of the first
    two years of the Lease and two wells in each year thereafter 
--  as part of its strategic joint venture arrangement with the Blood Tribe,
    the Blood Tribe or its nominee, will have the option to elect, in
    advance of drilling a well, to participate for a 20% working interest in
    any such well on the lands. If the Blood Tribe or it nominee elects not
    to participate in such well, the Blood Tribe or its nominee shall be
    entitled to a 20% working interest in such well once Bowood has
    recovered 200% of the total capital cost associated with such well 



The Equity Financing

The Company is also pleased to announce it has filed a preliminary short form
prospectus qualifying for distribution of a minimum of 60,000,000 and a maximum
of 80,000,000 Subscription Receipts at a price of $0.25 per Subscription Receipt
for aggregate gross proceeds of $15,000,000 to $20,000,000. The Offering is
co-led by GMP Securities L.P. and Haywood Securities Inc. The Offering is being
made in Ontario, Manitoba, Saskatchewan, Alberta and British Columbia and will
also be offered for sale internationally pursuant to applicable registration or
prospectus exemptions as permitted. Closing of the Offering is expected to occur
on or about September 21, 2010, and is subject to customary regulatory
approvals.


Bowood has also granted the agents an over-allotment option to place, on the
same terms, up to an additional 8 million Subscription Receipts for additional
aggregate gross proceeds of up to approximately $2 million. The option is
exercisable, in whole or in part, by the agents at any time up to 30 days after
closing of the Offering. The maximum gross proceeds that may be raised under the
Offering is $22,000,000 should this option be exercised in full. 


The net proceeds of the Offering will be used to fund the cash purchase price
payable by Bowood under the terms of the Lease, as well as for ongoing capital
expenditures and general corporate purposes, in addition to paying down the
Corporation's existing debt, such debt having been incurred to pay for the
Corporation's capital expenditure program during 2010. 


The gross proceeds of the financing will be held in escrow pending the
completion of the acquisition of the Lease. If the acquisition of the Lease is
completed on or before October 29, 2010, and certain escrow release conditions
have been fulfilled, the net proceeds will be released to Bowood and each
Subscription Receipt will be exchanged for one common share of Bowood for no
additional consideration. If the acquisition of the Lease is not completed on or
before October 29, 2010, holders of Subscription Receipts will receive a cash
payment equal to the offering price of the Subscription Receipts and any
interest that was earned thereon during the term of the escrow.


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

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities of Bowood in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The securities to be offered have
not been and will not be registered under the United States Securities Act of
1933, as amended, or any state securities laws and may not be offered or sold
within the United States or to or for the account or benefit of a U.S. Person
absent registration or an applicable exemption from the registration
requirements of such Act or laws.


Reader Advisories

Forward-Looking Statements: Certain information included in this press release
constitutes forward-looking statements and information under applicable
securities legislation. Such forward-looking information is provided for the
purpose of providing information about management's current expectations and
plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making investment
decisions. Forward-looking information typically contains statements with words
such as "anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", "project" or similar words suggesting future outcomes or statements
regarding an outlook. Forward-looking information in this press release may
include, but is not limited to, information with respect to: operational
decisions and the timing thereof, development and exploration plans and the
timing thereof; future production levels; the location and prospective nature of
the Lease lands; timing for completion of the Lease acquisition and joint
venture arrangement, and the Subscription Receipts Offering, and, the
anticipated benefits resulting from the transactions described in this press
release. Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but which may prove
to be incorrect. 

Although Bowood believes that the expectations reflected in such forward-looking
information are reasonable, undue reliance should not be placed on
forward-looking information because Bowood can give no assurance that such
expectations will prove to be correct. In addition to other factors and
assumptions which may be identified in this press release, assumptions have been
made regarding and are implicit in, among other things: field production rates
and decline rates; the ability of Bowood to secure adequate drilling and
production services; the ability of Bowood to complete the acquisition of the
Lease and the joint venture arrangement and the other transactions described in
this press release and, once completed, to realize the anticipated benefits of
thereof; the timely receipt of any required regulatory approvals; the ability of
Bowood to obtain and retain qualified staff, equipment and services in a timely
and cost efficient manner to develop its business; Bowood's ability to operate
the properties in a safe, efficient and effective manner; the ability of Bowood
to obtain financing on acceptable terms; the ability to replace and expand oil
and natural gas reserves through acquisition, development of exploration; the
timing and costs of pipeline, storage and facility construction and expansion;
future oil and natural gas prices; currency, exchange and interest rates; the
regulatory framework regarding royalties, taxes and environmental matters; and
the ability of Bowood to successfully market its oil and natural gas products.
Readers are cautioned that the foregoing list is not exhaustive of all factors
and assumptions which have been used. Forward-looking information is based on
current expectations, estimates and projections that involve a number of risks
and uncertainties which could cause actual results to differ materially from
those anticipated by Bowood and described in the forward-looking information.
The material risk factors affecting Bowood and its business are contained in
Bowood's Annual Information Form which is available under Bowood's issuer
profile on SEDAR at www.sedar.com. The forward-looking information contained in
this press release is made as of the date hereof and Bowood undertakes no
obligation to update publicly or revise any forward-looking information, whether
as a result of new information, future events or otherwise, unless required by
applicable securities laws. The forward looking information contained in this
press release is expressly qualified by this cautionary statement.


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.


You may also request additional information by emailing info@bowoodenergy.ca.

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