Bow Energy Limited (ASX:BOW) To Raise A$48 Million For Coal Seam Gas Projects

Brisbane, Nov 11, 2010 AEST (ABN Newswire) - Bow Energy Limited (ASX:BOW) (PINK:BOWYF) today announced that it will undertake an institutional placement of new ordinary shares ("Placement") to raise approximately A$48 million. In addition to the Placement, Bow will offer eligible shareholders the right to participate in a Share Purchase Plan ("SPP") capped at A$30 million, details of which will be sent to shareholders shortly.

Further details of the capital raising, along with a business update, are included in the attached Investor Presentation.

Upon a successful completion of the Placement, Bow will be in a strong cash position which will be used primarily to fund coal seam gas activities (CSG) including:

- Ongoing exploration and appraisal activities;

- Production pilots;

- Field infrastructure and pipeline approvals; and

- Completion and commissioning of Bow's 100% owned 30 MW Blackwater Power Project.

Merrill Lynch International (Australia) Limited and Wilson HTM Corporate Finance Limited are acting as Joint Lead Managers for the Placement.

Bow shares will remain in trading halt pending completion of the Placement.

Contact

John De Stefani Chief Executive Officer Tel: +61-7-3238-6300 Peter Harbison Chief Financial Officer Tel: +61-7-3238-6300