Petroflow Energy announces 2006 reserves information



    /NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

    (TSXV:PEF)

    CALGARY, April 23 /CNW/ - Petroflow Energy Ltd. (Petroflow) is pleased to
announce its year end December 31, 2006 reserves information. A summary of
Petroflow's working interest reserves is detailed as follows with all dollar
amounts in Canadian dollars.

    
                                   RESERVES

    At December 31, 2006 proved plus probable reserves increased to
12.9 million barrels of oil equivalent (boe) from 1.7 million boe at December
31, 2005, an increase of 652 percent.
    Total proved reserves increased to 9.6 million boe at December 31, 2006
compared to 1.6 million boe at December 31, 2005, an increase of 497 percent.
    All reserves added during 2006 can be attributed to successful drilling
operations, primarily in Oklahoma and New Mexico.

                             CAPITAL EFFICIENCIES

    Petroflow has achieved cost effective reserve growth for 2006 with finding
and development (F&D) costs on a per BOE basis as follows:

    -   proved plus probable F&D costs including future development capital
        of $12.31 (2005 - $12.41)
    -   proved plus probable F&D costs excluding future development capital
        of $3.86 (2005 - $9.37)
    -   proved F&D costs including future development capital of $12.40 (2005
        - $12.71)
    -   proved F&D costs excluding future development capital of $5.39 (2005
        - $9.98)

    The aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in estimated future
development costs generally will not reflect total finding and development
costs related to reserves additions for that year.

                           YEAR END NET ASSET VALUE

    Petroflow's net asset values for the Company and per fully diluted share
are as follows:

    -   NAV discounted at 5 percent before tax Proved reserves,
        $163.3 million ($5.58 per share), Proved plus probable reserves,
        $210.5 million ($7.20 per share)
    -   NAV discounted at 10 percent before tax Proved reserves,
        $114.6 million ($3.92 per share), Proved plus probable reserves,
        $146.7 million ($5.02 per share)

    The NAV calculations were determined by taking the third party engineered
reserve values and adding all current assets and subtracting all liabilities
of the company as well as adding proceeds from the exercise of all outstanding
share options and warrants as at December 31, 2006. The total amount was then
divided by the number of fully diluted shares outstanding at December 31, 2006
(29,247,902 shares).
    

    Forward-Looking Statements
    This news release contains statements about oil and gas production and
operating activities that may constitute "forward-looking statements" or
"forward-looking information" within the meaning of applicable securities
legislation as they involve the implied assessment that the resources
described can be profitably produced in the future, based on certain estimates
and assumptions.
    Forward-looking statements are based on current expectations, estimates
and projections that involve a number of risks, uncertainties and other
factors that could cause actual results to differ materially from those
anticipated by Petroflow and described in the forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services, government regulation and foreign political risks, fluctuations in
the exchange rate between Canadian and US dollars and other currencies, as
well as other risks commonly associated with the exploration and development
of oil and gas properties. Additional information on these and other factors,
which could affect Petroflow's operations or financial results, are included
in Petroflow's reports on file with Canadian securities regulatory
authorities.

    Not for dissemination in the United States of America. This announcement
is not an offer to sell, or a solicitation of an offer to buy, Petroflow's
shares in the United States. Petroflow's shares have not been and will not be
registered under the U.S. Securities Act or any U.S. state securities laws and
have not been and will not be offered or sold in the United States except in
transactions exempt from the registration requirements of that Act and
applicable U.S. state securities laws.

    BOEs derived by converting gas to oil in the ratio of six thousand cubic
feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.





For further information:

For further information: John Melton, President and Chief Executive
Officer at (504) 453-2926; Duncan Moodie, Chief Financial Officer at (403)
539-4311

Organization Profile

PETROFLOW ENERGY LTD.

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