2009-05-20-2007-05-01-2007-07-01

Purchased assets in AB & BC, involving 3.8 MMBOE proved & probable.

Gentry Resources Ltd., Calgary, (Toronto: GNY) has acquired certain assets in Alberta from Bow Valley Energy Ltd., Calgary, (Toronto: BVX) for C$74.25 million. The price is C$39,000 per producing barrel of oil equivalent, C$25 per proved barrel equivalent and C$16.38 per proved and probable barrel equivalent according to Gentry. The assets include three core operated high working interest properties in the Gilby, Mikwan and Rosevear areas of west-central Alberta and the Dunvegan, Paddy, Spirit River, Bluesky, Gething, Halfway and Montney areas of the Peace River Arch area of northern Alberta. Production is approximately 1,600 barrels of oil equivalent per day (80% gas). Proved reserves are 2.5 million barrels equivalent and proved and probable reserves are 3.8 million barrels equivalent. Gentry has operatorship on 85% of the assets. Bow Valley president and chief executive R.G. Moffat says, "The production volumes sold in the Canadian transaction will soon be replaced with first oil production from Bow Valley's equity interest in the Enoch field development in the U.K. The sale of the Canadian assets also completes the transition of Bow Valley into a pure international company pursuing larger and higher netback production opportunities." Gentry will fund the deal with bank debt from its credit facility and equity from a subscription receipt sale. Bow Valley will use the proceeds from the sale to retire debt and fund internal growth.