/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
TSXV Symbol - PEF
CALGARY, April 2 /CNW/ - Petroflow Energy Ltd. ("Petroflow") is pleased
to announce that it has increased its borrowing base availability to
$US 30,000,000 under a restated credit facility of up to $US 100,000,000.
Texas Capital Bank, Petroflow's current bank, has retained Guaranty Bank as
co-lender and co-agent in providing this loan. The facility allows for
potential borrowing base increases based on planned quarterly reviews of
Petroflow's reserves and financial performance due to ongoing drilling
operations in Oklahoma and New Mexico. Additionally the lenders and Petroflow
have agreed to an interim review within the next four to six weeks allowing
for the addition of reserves now under completion.
"The increase in our borrowing capability is a direct result of our
ongoing growth of reserves and production in Oklahoma," Petroflow CEO John
Melton was quoted as saying. The incremental funds are being used to repay
Petroflow's pre-existing bridge loan and to provide working capital
substantially all of which is for Oklahoma and New Mexico drilling operation.
John Melton also commented that, "This significantly expanded banking facility
will provide solid support for accelerated reserve growth through our ongoing
Petroflow also is announcing the expiration of its previously announced
Purchase and Sale agreement ("PSA") to sell five of its producing wells in
Oklahoma. The terms of the PSA called for the transaction to close on or
before March 31, 2007, which did not occur, thus allowing Petroflow to retain
these reserves under the restated credit facility.
This news release contains statements 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. We assume no obligation to update forward-looking statements
should circumstances or management's estimates or opinions change unless
otherwise required under securities law.
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.
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; or Duncan Moodie, Chief Financial Officer, at
(403) 539-4311; Petroflow can also be reached at its website:
www.petroflowenergy.com or by email: email@example.com