BOWOOD ENERGY INC. ANNOUNCES CLOSING OF SUBSCRIPTION RECEIPT OFFERING

TSX VENTURE EXCHANGE: BWD

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

CALGARY, Sept. 21 /CNW/ - Bowood Energy Inc. ("Bowood" or the "Corporation") (TSXV:BWD) is pleased to announce that it has completed its previously announced subscription receipt financing. Bowood, through a syndicate of agents co-led by GMP Securities L.P. and Haywood Securities Inc. (collectively, the "Agents") issued a total of 88,000,000 subscription receipts ("Subscription Receipts") at a price of $0.25 per Subscription Receipt to raise gross proceeds of $22 million, including the full exercise of the over-allotment option.

The gross proceeds of the Subscription Receipt financing will be held in escrow pending the completion of the previously announced acquisition by the Corporation of certain lands and leases in Southern Alberta from the Blood Tribe (the "Acquisition"). If the Acquisition is completed on or before October 29, 2010, the proceeds will be released to Bowood and each Subscription Receipt will be exchanged for one common share of Bowood for no additional consideration. If the Acquisition is not completed on or before October 29, 2010 or the Acquisition is terminated at an earlier time, holders of Subscription Receipts will receive a cash payment equal to the offering price of the Subscription Receipts and any interest that was earned thereon during the term of the escrow.

The Subscription Receipts will be listed for trading on the TSXV under the symbol BWD.R.

About Bowood Energy Inc.

With operations based in Calgary, Alberta, Bowood Energy Inc. is a TSX-V Tier 2 corporation. Through its wholly owned subsidiary, Bowood Energy Ltd., the Company is engaged in the acquisition, exploration, development, and production of oil and gas resources. Projects are currently situated in the Province of Alberta.

Bowood Energy Inc.

Robert Mercier, President & CEO

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Bowood in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For further information: on Bowood Energy Inc. (BWD: TSXV) and to see the updated corporate presentation please visit the website at: http://www.bowoodenergy.ca or contact: Michael J. Kryczka, VP Business Development & CFO, T: [phone], E: [email protected]; Mike Curtis, Investor Relations, T: [phone], E: [email protected], You may also request additional information by emailing [email protected]