Bow Energy Limited : 22-August-2011 | Non-Binding Conditional Proposal

ASX A nno uncem e nt 22 Augus t 2011 Non ? bi nd i n g condit ion a l prop os al

The Board of Bow Energy Limited (ASX:BOW, ?Bow Energy?) advises that it has received an indicative, non?binding and conditional proposal (?Proposal?) from Arrow Energy Holdings Pty Ltd (?Arrow?). Arrow is an Australian coal seam gas exploration and production company which is developing an LNG project at Gladstone, and is jointly owned by subsidiaries of PetroChina and Royal Dutch Shell.

Under the Proposal, Arrow Energy would acquire all of the issued capital in Bow Energy from

Bow Energy shareholders for cash consideration of $1.48 per share.

At this stage the Bow Energy Board recommends that shareholders take no action.

End.For further information, please contact:

Mr John De Stefani Chief Executive Officer Tel [phone]

Mr Andrew Barber Investor Relations Tel [phone] Mob [phone]

Mr Peter Brookes Media Relations (Citadel) Tel [phone] Mob [phone]

Bow Energy Limited ? ACN 111 019 857 ? Street Level 26, 10 Eagle street, Brisbane QLD 4000 ? Post GPO Box 5244, Brisbane QLD 4001

Phone [phone] ? Fax [phone] ? Web www.bowenergy.com.au ? Email [e-mail]