LGX Oil & Gas, Inc. (ROAOF)

[LGL8054]

Bowood Energy Inc. Reports 2011 Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") is pleased to announce its financial and operational results for the three months ended September 30, 2011. The unaudited Financial Statements and related Management Discussion and Analysis will be filed with the Canadian securities regulatory authorities on SEDAR. An electronic copy of these materials will also be publicly available under Bowood's issuer profile on SEDAR at www.sedar.com and on the Company's website at www.bowoodenergy.ca.

Operating Highlights
Operating Highlights Three months ended
September 30 Nine Months Ended
September 30
2011 2010 2011 2010
(6:1 boe conversion)
Average daily production
Natural gas (mcf/d) 2,753 2,779 2,435 3,027
Liquids (Oil & NGLs) (bbls/d) 88 49 84 38
Oil equivalent (boe/d) 547 512 490 543
Production (boe/d) per million shares 2 3 2 3
Average sales price (including fixed commodity contracts):
Natural gas ($/mcf) 3.75 5.28 3.93 4.88
Liquids (Oil & NGLs) ($/bbl) 77.67 64.55 82.27 66.61
Oil equivalent ($/boe) 31.33 34.83 33.62 31.92
Operating cost ($/boe) 13.52 14.47 13.49 13.68
Operating netback ($/boe) (including fixed commodity contracts)
15.31
16.76
17.09
15.51

Bowood's oil weighting was positively impacted in the third quarter by the receipt of regulatory approval to produce our 35% working interest oil well at Armada 2-1-17-19 W4 without Energy Resources Conservation Board ("ERCB") allowable restrictions. The Armada well has been producing approximately 60 bbls/d of oil net to Bowood since it resumed production in late July, 2011. Production was also positively impacted by the successful drilling and completion of a new 90% working interest gas well at 8-3-17-19 W4 also in Armada. The well averaged gas production of 950 mcf/d (150 boe/d at a 6:1 conversion ratio) net to the Company since August, 2011. The Armada area now represents over 50% of Bowood's production. Management is optimistic regarding additional development locations, and additional drilling is currently anticipated for Armada in 2012. Company current field estimates of production are 600 boe/day (100 bbl/day oil and 3.0 mmcf/day natural gas).

Financial Highlights
Financial Highlights Three months ended
September 30 Nine Months Ended
September 30
(all amounts in Cdn $ except common share data) 2011 2010 2011 2010
Petroleum and natural gas revenue 1,575,360 1,194,460 4,494,122 4,154,848
Per share - basic 0.006 0.006 0.016 0.022
- diluted 0.006 0.006 0.016 0.022
Funds flow from operations 292,563 89,293 708,284 581,047
Per share - basic 0.001 0.00 0.003 0.003
- diluted 0.001 0.00 0.003 0.003
Net loss (1,123,387) (1,118,486) (1,639,453) (1,796,103)
Per share - basic (0.004) (0.006) (0.006) (0.01)
- diluted (0.004) (0.006) (0.006) (0.01)
Capital expenditures 4,759,424 2,925,886 9,201,589 5,165,094
Net debt (excluding fixed commodity contracts) (2,147,171) 5,767,557 (2,147,171) 5,767,557
Shareholders' equity 48,972,022 25,136,646 48,972,022 25,136,646
Total assets 59,273,426 38,252,601 59,273,426 38,252,601
Common share data:
Basic 274,933,373 186,233,373 274,933,373 186,233,373
Diluted 290,253,373 202,303,373 290,253,373 202,303,373

The third quarter net loss is in large part a result of the expiry of 8,800 acres of crown land in the Wildwood Area in central Alberta. The lands, originally acquired by Bowood in 2006 for shallow gas potential, were allowed to expire during Q3. Under International Financial Reporting Standards, as undeveloped land expires, the carrying value is removed from Exploration and Evaluation Assets and expensed to the Statement of Income (loss).

At the end of Q3, 2011 Bowood had net debt of $2.2 MM on an $8.5 MM credit facility through the Canadian Western Bank. The majority of the $4.8 MM of capital expenditures in Q3 was focused on land, seismic and drilling activity in the Alberta Bakken play.

Southern Alberta Bakken Exploration

During the third and the fourth quarter to date, Bowood concluded the drilling and completing of our Spring Coulee and Kipp wells and management is encouraged by the early results from these exploration wells. The Spring Coulee well was recently placed on production, while the Kipp well is currently shut in awaiting production equipment. Bowood anticipates releasing comprehensive results for both wells within the next few days.

About Bowood Energy Inc.

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. Current projects are in the Province of Alberta.

Reader Advisories

Forward-Looking Statements: Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. All statements other than statements of historical fact contained in this news release are forward-looking statements. Readers can identify many of these statements by looking for words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward-looking information in this press release includes, among other things, information relating to: (i) expectations regarding the Company's production results in its properties; (ii) expectations relating to the Company's financial position and its ability to access capital (iii) expectations regarding the Company's production rates, (iv) expectations regarding the completion and evaluation of the Company's Spring Coulee, Kipp and Armada wells; and (v) expectations regarding the spudding and drilling of new wells, including the timing of such activities.

The forward-looking statements included in this press release 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. 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. Readers are cautioned that the foregoing list of factors is not exhaustive. 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, 2010, 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.

Bowood Energy Inc. was recognized as a TSX Venture 50(R) company in 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.