2009-08-15-2009-03-01

Plans to buy co., gaining 11.3 MMbOE 2P.

Dana Petroleum Plc, London, (London: DNX) plans to acquire Bow Valley Energy Ltd., Calgary, (Toronto: BVX) for C$219 million (US$177 million) in cash and assumed debt. Dana will issue C$0.50 per Bow Valley share and assume C$175 million (US$142 million) in debt as of Dec. 31. The offering is a 70% premium to Bow Valley's share price on Feb. 13. The deal values proved and probable reserves at US$9.47 per barrel. Bow Valley's assets include Blane, Chestnut, Enoch and Kyle oil fields in the U.K. North Sea, a fifth named Ettrick scheduled to come on-stream within the next three months, and additional acreage in Alaska. Pro forma, Dana will have 35 producing fields. Production, following Ettrick's activation, will be 7,800 barrels of oil equivalent per day (80% liquids). Pro forma, Dana will have production of approximately 47,000 barrels equivalent per day. Proved and probable reserves as of Dec. 1 were 11.3 million barrels equivalent. Dana chief executive Tom Cross says, "The acquisition of Bow Valley is directly in line with Dana's successful strategy of growing reserves and production in its core operating areas through both exploration and acquisition. Dana already has a working knowledge of the North Sea assets of Bow Valley, which form a close fit with Dana's existing North Sea portfolio. For example, both companies hold interests in the Enoch oil field and Bow Valley's Kyle oil field is tied back to Dana's Banff oil field." Dana will fund the acquisition with a new three-year US$400-million revolving credit facility provided by Bank of Scotland. The remaining debt will be used to fund general corporate purposes. RBC Capital Markets is financial advisor to Dana. The deal is expected to close by mid-April.