Dana Petroleum has entered into an agreement with Bow Valley Energy that provides for the acquisition of Bow Valley by Dana pursuant to a plan of arrangement under the Business Corporations Act (Alberta).

Pursuant to the Arrangement Agreement, and subject to certain conditions, including Canadian court approval, approval pursuant to the Investment Canada Act (Canada) and the approval of the shareholders of Bow Valley, Dana will acquire all of the outstanding shares of Bow Valley for a cash consideration of $0.50 per share representing an aggregate consideration of $219 million (US$177 million), which includes the assumption of an estimated $175 million (US$142 million) of net debt as at 31 December 2008.

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

Tom Cross, Chief Executive Officer of Dana said,“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.”

Tags: Bow Valley Energy Ltd., Dana Petroleum