Bow Energy Ltd (ASX:BOW), an Australia-based company engaged in oil and gas exploration and in discovery and commercial production of coal seam gas (CSG), announced today it has successfully completed a placement of 42.1 million ordinary shares to Institutional and Sophisticated Investors at $1.15 per share to raise $48.4 million.

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

Bow chief executive John De Stefani said, "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 per cent 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.

At 1332 AEDT, Bow shares had slid 12 cents or 9.23 per cent to $1.18 on volume of more than 4.5 million shares.