Bowood Energy Inc. (TSXV: BWD) and Legacy Oil + Gas Inc. (TSX:LEG) announce that the shareholders of Bowood, at the annual general and special meeting of shareholders held this morning, approved the previously announced strategic transaction with Legacy by a positive vote in excess of 92% of the votes cast. Bowood and Legacy are further pleased to announced that, following such approval, they have completed: (i) the sale of Legacy's southern Alberta assets, excluding assets in the greater Turner Valley area, to Bowood (the "Asset Purchase"); and (ii) the appointment of a new management team and certain new directors for Bowood.
The Asset Purchase consisted of the sale of Legacy's undeveloped land in southern Alberta, excluding assets in the greater Turner Valley area, to Bowood in exchange for 200,000,000 common shares of Bowood ("Bowood Shares"). The Asset Purchase included the Legacy/Bowood joint venture land, including the Big Valley oil wells drilled at Kipp and Spring Coulee. The Legacy farmin agreement with Bowood was terminated upon closing of the Asset Purchase. Following completion of the Asset Purchase, Bowood has 474,933,373 Bowood Shares outstanding, 42.1% of which are owned by Legacy.
New Management and Directors
Following completion of the Asset Purchase: (i) the former officers of Bowood resigned and were replaced by Trent Yanko as President and Chief Executive Officer, Matt Janisch as Vice-President, Finance and Chief Financial Officer and Mark Franko as Corporate Secretary; (ii) the board of directors of Bowood was reconstituted to be comprised of James Pasieka as Chairman, Trent Yanko, Chris Bloomer, Jim Welykochy and Neil Roszell; and (iii) Legacy and Bowood entered into a management, technical and administrative services agreement on the terms previously disclosed.
Upon closing of this transaction, Bowood becomes a high impact light oil exploration focused junior company with the dominant high working interest, operated position in the southern Alberta Bakken play, an exploration play that has attracted significant industry activity in recent years. The Company has 155,974 net acres of undeveloped land in the over-pressured oil window in the Alberta Bakken fairway, including a contiguous 60,512 net acre block on the Blood Tribe Reserve. It is expected that Bowood will evaluate potential acquisition opportunities to build an inventory of oil development drilling locations with the view of increasing the Company's cash flow to be able to fund a sustainable exploration program over a multi-year period.
The Vancouver, British Columbia-based company's mostly contiguous land base at Chambers-Ferrier now totals 25 sections (16,000 gross acres) with an approximate average working interest of 79.5% in 16 of the 25 sections and varying interests in nine (9) wells.
Darden will remain on the board as a director and chairman emeritus. He will continue as an employee of the company through the end of the year, focusing on strategic transactions including the pursuit of a joint venture in the Horn River Basin in British Columbia.