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Dana Petroleum to buy North Sea oil producer Bow Valley for CDN$219 mln

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Dana Petroleum PLC said it has agreed to buy Bow Valley Energy Ltd for CDN$0.50 per share in cash, paying CDN$219 million for the North Sea oil producer, which includes the assumption of an estimated CDN$175 million net debt as of December 31 2008.

The offer price represents a premium of approximately 70 percent over Bow Valley's closing share price of CDN$0.295 per share on February 13 2009 and a premium of 53 percent to the 20-day volume weighted average trading price to the same date.

Bow Valley currently has four oil fields producing in the UK, namely Blane, Chestnut, Enoch and Kyle, with a fifth, Ettrick, due to come on-stream within the next three months.

Once Ettrick is on-stream, Dana expects the acquisition of Bow Valley to add approximately 7,800 barrels of oil equivalent per day of production to the Dana portfolio, representing an approximate 20 percent increase over Dana's average production in 2008 of 39,400 boepd.

Following completion of the transaction, Dana's total number of producing fields will increase to 35.
Bow Valley is a TSX-listed oil and gas exploration and production company focused predominantly on the UK North Sea with additional acreage in Alaska. The company is headquartered in Calgary with a local UK office in Berkshire, England.

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