Bowood Strategic Rationale and Corporate Strategy
The combination of assets with the experienced Legacy team creates a high impact, light oil exploration focused junior with a dominant operated position and leverage to the emerging southern Alberta Bakken play, that is well positioned to emerge as a larger, stronger and balanced producer with the following attributes:
155,974 net acres of undeveloped land in the over-pressured oil
window in the Alberta Bakken fairway, including a contiguous
60,512 net acre block on the Blood Tribe Reserve
-- Multi-zone potential
-- Production of approximately 500 Boe per day
-- Proven management team with a track record of value creation in
junior companies
-- Well financed, improved access to capital
-- Access to the leading technical capabilities of a much larger
company
Bowood will be managed by Legacy's current management team and staff, under the terms of a Services Agreement, in exchange for a monthly fee. All key Legacy technical, land, accounting and field staff involved with the play since inception will continue to work the area. Legacy and Bowood have also agreed to an Area of Exclusion in which Bowood will have first priority over Legacy to
pursue any potential acquisition transaction. The Area of Exclusion covers all of southern Alberta south of Twp. 27, excluding an area around Legacy's Turner Valley field.
In addition to the two successful wells drilled to-date by Legacy and Bowood, recent disclosure by competitors in the play has underscored the potential of the southern Alberta Bakken play to become a significant multi-zone light oil resource play. New Management believes as a focused, pure play company, Bowood is well positioned to benefit from continued industry success while further delineating the potential of its significant undeveloped land base. New Management will also pursue a consolidation strategy within Bowood's core operating area of southern Alberta, increasing exposure to additional high impact light oil resource plays while also focusing on opportunities that build an inventory of oil development drilling locations complementary to the oil resource play exploration program.
