Bow Valley Energy Ltd. announces the closing of the previously announced sale of its Canadian assets for gross proceeds of $74.25 million, subject to normal closing adjustments. Cash proceeds from the sale will be used to retire Bow Valley Energy Ltd.'s Canadian debt, which is currently estimated at C$25.9 million. The remainder of the net proceeds will be used to fund other international growth opportunities.
R.G. Moffat, President and CEO of Bow Valley commented, "The net proceeds from the sale of the Canadian operations combined with the Company's growing production profile in the U.K. North Sea positions Bow Valley to capitalize on future growth opportunities. The combined financial resources of the Company will be used to fund further field developments, exploration and potential acquisitions in the North Sea or the North Slope of Alaska. The production volumes sold in the Canadian transaction will soon be replaced with first oil production from Bow Valley's equity interest in the Enoch field development in the U.K. The sale of the Canadian assets also completes the transition of Bow Valley into a pure international company pursuing larger and higher netback production opportunities."