Bow Valley updates international operations

Bow Valley Energy Ltd. provides an update on its international operations.

U.K. North Sea Operations Production for the fourth quarter of 2007 was approximately 4,300 boe/d. Due to the timing of lifting oil shipments the sales volume for the fourth quarter is expected to be approximately 3,600 boe/d up approximately 93% from sales of 1,867 reported in the previous third quarter 2007. The remaining fourth quarter volumes are held in inventory pending future liftings and sales in 2008.

New production additions are expected over the next six months from field developments at Chestnut and Ettrick. At the Chestnut field, the Sevan Hummingbird production facility was anchored on the field location in December 2007. The subsea wells will shortly be tied to the facility with flexible risers and first oil is expected in the second quarter of 2008. Drilling and completion of the Ettrick field development wells is continuing. The Aoka Misu FPSO is undergoing hook-up in the Sembawang shipyard, Singapore, with delivery anticipated in the second quarter. First oil production is forecast around mid year 2008.

U.K. North Sea Exploration The 9/28b-19A exploration well, operated by Bow Valley Petroleum (UK) Limited (37.5%) on behalf of partners Marathon Oil U.K. Ltd. (37.5%) and Vaalco UK (North Sea) Limited (25%), was drilled to a total measured depth of 12,726 feet. The well penetrated a thick sequence of Upper Jurassic Brae Formation sandstone reservoirs, the top of which encountered 105 feet of gross oil column. Formation pressures and fluid samples were acquired during a TD wireline logging programme. The potential reserves associated with this discovery are smaller than anticipated and the well has been suspended pending further evaluation or possible development in conjunction with other activity in the area. Bow Valley was carried for the majority of its costs in the drilling of this well.