Bowood Energy Inc (BWD)

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Bowood Announcement

Bowood Announces Positive Alberta Bakken Drilling Results and Expansion of Land Position
Wednesday, Oct 19, 2011
Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") provides the following operational update of its recent drilling and land acquisition activities in the Southern Alberta Bakken play. Bowood is pleased with the early exploration results from its first two joint exploration wells as well as other industry activity in the fairway. To date 85 wells have been licensed and permitted in the play and 25 wells are currently on production. The recent level of activity in the play continues to be a positive sign from industry that there is significant resource potential in the fairway.

Spring Coulee Well

The Company's first Southern Alberta Bakken horizontal well, located at Spring Coulee on Freehold acreage has been completed. The well is now being equipped for production and first production is anticipated within the next week. The well was drilled directionally to a depth of 2,197 meters with a pilot hole through the Bakken system. Cores were taken in the Second White Specks and in the Bakken petroleum system, including the lower Banff, the Exshaw and the Big Valley formations. Analysis of the Bakken system core is consistent with Company's expectations including vitrinite reflectance analysis which indicates that the well is in an area that is optimally located for peak oil generation. The horizontal section of the well was drilled to a 1,230 meter length and completed with a 20 stage hydraulic fracture stimulation using water based fluids. Following stimulation, the well was cleaned up for 15 days and recovered approximately half of the injected fracture fluid together with 1,380 bbls of light oil. At the end of the 15 day clean up the well was swab tested at a rate of approximately 220 bbls/day of oil at a 65% oil cut. The oil cut increased steadily throughout the clean up and swab test, as water based injected load fluid from the fracture stimulation was recovered from the well. In accordance with its joint venture agreement with Legacy Oil + Gas Inc. ("Legacy"), Bowood incurred 20% of the costs to drill and complete the Spring Coulee well and retains a 50% working interest in the well and surrounding lands.

Kipp Well

Drilling is now complete on the Company's second Alberta Bakken horizontal well, located at Kipp on the Blood First Nation Reserve. The well had a directional pilot hole drilled through the Bakken system to the Nisku formation. The well was cored in the Second White Specks and in the Bakken Petroleum system. The Kipp well was then drilled horizontally to a total measured depth of 3,610 meters and has been equipped for a 20 stage hydraulic fracture stimulation over the 1,290 meter horizontal section. Completion operations are expected to commence in late October. Bowood is paying 16% of the cost of the drilling and completion operations to retain a 40% working interest in the well.

Land Acquisition

In September 2011, Bowood and its partner Legacy jointly acquired an additional 9,658 acres (4,829 net to each partner) of contiguous land offsetting the Spring Coulee well. The lands are expected to be prospective for the Bakken Petroleum system and the shallower Second White Specks oil resource play. This acquisition increases Bowood`s net land position in the Southern Alberta Bakken fairway to approximately 110,000 acres.