Bow Energy Limited (ASX:BOW) Successful Completion of Institutional Placement Raising A$48.4 million

Brisbane, Nov 12, 2010 AEST (ABN Newswire) - Bow Energy Limited (ASX:BOW) (PINK:BOWYF) is pleased to announce that it has successfully completed a placement of 42.1 million ordinary shares to Institutional and Sophisticated Investors at A$1.15 per share to raise A$48.4 million ("Placement").

The equity raising was oversubscribed with strong demand from new and existing Australian and international Institutional investors.

Bow's CEO John De Stefani said, "The Company is very pleased with the success of the Placement. The fact that it was strongly oversubscribed by both existing and new investors indicates strong support for Bow and its strategy".

"Bow is now in a strong position to fund ongoing exploration and appraisal activities, production pilots, field infrastructure and pipeline approvals as well as completion of Bow's 30 MW Blackwater Power Project. These activities are targeted to deliver commercial gas flows, early cash flow from electricity sales plus gas reserves of 6,200PJ 3P and 1,250PJ 2P by end of 2011 across Bow's 100% owned Bowen Basin CSG fields. Concurrently, Bow will continue with plans for the development of its reserves, targeting both domestic gas and export LNG markets", De Stefani concluded.

New shares issued under the Placement will rank equally with existing fully paid ordinary shares in Bow and are expected to be settled on Wednesday, 17 November 2010. Quotation and trading of these shares on the ASX is scheduled to commence on Thursday, 18 November 2010.

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

Share Purchase Plan

Bow will also offer eligible shareholders as at 7.00pm (Sydney time) on Wednesday, 10 November 2010 an opportunity to participate in a Share Purchase Plan ("SPP") allowing them to acquire up to A$15,000 in new Bow shares. The price of Bow shares under the SPP offer will be set at the placement price of A$1.15. The maximum funds to be raised under the SPP is capped at A$30 million. Full details of the SPP will be sent to eligible shareholders shortly.

Contact

John De Stefani Chief Executive Officer Tel: +61-7-3238-6300 Peter Harbison Chief Financial Officer Tel: +61-7-3238-6322 http://www.bowenergy.com.au