Bowood Energy To Enter Alberta JV With Kainaiwa Resources

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
14MM
Description

To farm-in on acreage in Alberta's Bakken play.

Bowood Energy Inc., Calgary, (Toronto Venture: BWD) plans to farm-in on acreage in the southern Alberta Bakken play owned by Kainaiwa Resources Inc. in exchange for drilling commitments and C$14 million in cash.

Bowood says the five-year lease will add significantly to its position in the southern Alberta Bakken fairway, where it will hold a 100 percent interest in 104,000 net acres. According to the agreement, the company will drill one well in each of the first two years of the lease, and two wells each year thereafter.

Kainaiwa is owned by the Kainai, or Blood, Tribe, an indigenous Canadian people in Alberta.

In conjunction with the transaction, Bowood was expected to have concluded a C$15 million subscription receipt offer co-led by GMP Securities LP and Haywood Securities Inc. by Sept. 21.