Bowood Energy Inc. Announces Commencement of Rights Offering

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CALGARY, July 12, 2012 /CNW/ - Bowood Energy Inc. ("Bowood" or the "Company") is pleased to announce that it has commenced its previously announced rights offering (the "Rights Offering").  Bowood has established July 26, 2012 as the record date for the Rights Offering (the "Record Date").  Pursuant to the Rights Offering, each holder of a Common Share on the Record Date will receive one transferable right (a "Right") for every Common Share held.  Every ten (10) Rights will entitle the holder to purchase one Common Share at a price of $0.05 per Share until the Rights expire at 4 p.m. (Calgary time) on August 17, 2012 (the "Expiry Date").  The Rights Offering will include an additional subscription privilege under which holders of Rights who fully exercise their Rights will be entitled to subscribe for additional Common Shares, if available, that were not otherwise subscribed for in the Rights Offering.  There is no standby guarantee.

The Common Shares are expected to commence trading on an ex-rights basis on the TSXV at the opening of trading on July 24, 2012.  Accordingly, Common Shares purchased on or following July 24, 2012 will not be entitled to receive Rights under the Rights Offering.  At that time, the Rights are expected to be posted for trading on a "when issued" basis on the TSXV under the symbol "BWD.RT".  Trading of the Rights is expected to continue until 10:00 a.m. (Calgary time) on the Expiry Date.

Legacy Oil + Gas Inc. has agreed not to participate in the Rights Offering with respect to the 200,000,000 Common Shares that it acquired on July 5, 2012 and will not be entitled to exercise, sell or convey any Rights.  Accordingly, a maximum of approximately 27,497,337 Common Shares will be issued pursuant to the Rights Offering for gross aggregate proceeds of approximately $1.375 million.  Bowood will use the proceeds of the Rights Offering for general corporate purposes.

A rights offering circular, together with rights certificates, will be mailed to eligible holders of Common Shares as soon as possible following the Record Date.  Registered shareholders wishing to exercise their rights must forward the completed rights certificates along with the applicable funds to the subscription agent for the Rights Offering, Olympia Trust Company (the "Subscription Agent"), by the Expiry Date. Shareholders who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

The Rights Offering will be made in all provinces of Canada, except Québec, and in such other jurisdictions where Bowood is eligible to make such offering (the "Qualifying Jurisdictions").  Rights certificates will not be issued and forwarded by Bowood to holders of Common Shares not resident in the Qualifying Jurisdictions.  Instead, Rights otherwise issuable to such holders will be issued to and held by the Subscription Agent, which will use its best efforts to sell the Rights on behalf of all such holders prior to the Expiry Date and then forward the net proceeds pro rata to such holders.

Investor Conference Call

Management of Bowood will be holding a conference call for investors, financial analysts, media and any interested persons on Tuesday July 17, 2012 at 9:00 a.m. (MDT) (11:00 a.m. EDT) to discuss the Rights Offering and the recently announced unit financing.

The investor conference call details are as follows:

Participant Dial-In Number(s):

• Operator Assisted Toll-Free Dial-In Number:  [phone]
• Local Dial-In Number:  [phone]

Caution Respecting Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the anticipated timing of the listing of the Rights on the facilities of the TSXV.

The forward-looking statements are based on certain key expectations and assumptions, including the receipt of all required regulatory approvals on a timely basis.  Although it is believed that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Bowood can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the failure to receive all required regulatory approvals on timely basis or at all.

The forward-looking statements contained in this press release are made as of the date hereof and Bowood does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities 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.

Trent J. Yanko, P.Eng.
President + CEO

Matt Janisch, P.Eng.
Vice President, Finance + CFO

4400, 525 - 8^th Avenue S.W.
Calgary, AB T2P 1G1

Telephone: [phone]