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BOW VALLEY INDUSTRIES LTD. ANNOUNCES WRITE DOWN

 BOW VALLEY INDUSTRIES LTD. ANNOUNCES WRITE DOWN
 CALGARY, Alberta, Jan. 29 /PRNewswire/ -- Bow Valley Industries Ltd. (AMEX: BVI, Toronto, Montreal: BVI) announces that the annual ceiling test evaluation of its oil and gas properties at Dec. 31, 1991 will result in a write down of approximately $270 million, representing about 17 percent of the book value of the company's total assets. The write down will cause Bow Valley to incur a net loss for the year ended Dec. 31, 1991, but will not affect the company's cash flow. Net income, and consequently return on capital employed, will be influenced positively in future periods due to a reduction in the depreciation and depletion charge as a result of the write down.
 The majority of the write down will be in Canada, due principally to year over year oil and gas price declines together with a reduction in proved oil and gas reserves. Approximately $180 million of the decline in value relates to the significant reduction in year-end oil and gas prices from Dec. 31, 1990 to Dec. 31, 1991. Also included in the write down will be $20 million for the company's Canadian east coast offshore Whiterose property. Revisions to reserves due to engineering redetermination will account for $50 million of the total write down, with the remainder attributable to unsuccessful exploration projects and to increased operating and future development costs. Worldwide reductions in proved reserves due to the engineering redetermination will amount to 9.8 million barrels of oil and 118 Bcf of gas.
 Due to the magnitude of the ceiling test write down, Bow Valley believes it is appropriate to release this information prior to the release of its 1991 financial results, which are expected to be announced on or about Feb. 14, 1992.
 -0- 1/29/92
 /CONTACT: Elaine J. Lambert of Bow Valley Industries Ltd., 403-261-6160/
 (BVI) CO: Bow Valley Industries Ltd. ST: Alberta IN: OIL SU:


DM -- LA024 -- 4973 01/29/92 17:49 EST
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Publication:PR Newswire
Date:Jan 29, 1992
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