Bow Valley Energy has received from its bank lending group waivers and extensions to an interim date of February 15th, 2009 for its senior and subordinated acquisition facilities. The waivers and extension are provided in conjunction with the previously announced strategic review process being undertaken by the Company.

In respect of the senior facility the date for the scheduled redetermination at December 31, 2008 has been waived to February 15, 2009 and the US $10 million fixed minimum repayment has been extended by six months to June 30, 2009. The due date of the £17.5 million acquisition facility has been extended to February 15, 2009. The Company expects that further waivers and extensions will be provided beyond the interim date of February 15, 2009, permitting the strategic review process to draw to a logical conclusion late in the first quarter or early in the second quarter. In consideration of the waivers and extensions, Bow Valley has agreed to a fee of US $3 million payable upon the cancellation of all outstanding UK corporate debt.

As previously announced, Bow Valley's Board of Directors appointed a Special Committee composed of independent directors and has engaged Scotia Waterous Inc. to examine and consider a range of strategic alternatives available to the Company. These alternatives will include, among other things, potential asset divestments, equity alternatives, strategic alliances, joint venture opportunities, mergers or a corporate sale transaction.

No decision on any particular alternative has been reached at this time and there can be no assurance that the strategic review process will result in any change in the Company's current operations or that the Company will pursue any particular transaction.

Tags: Bow Valley Energy Ltd.