(TSX Symbol - PEF; NYSE Amex Symbol - PED)
CALGARY, June 29 /CNW/ -
Corporate Production Update
The estimated peak production rate for the month of May 2009 was 4,519
BOEs (27,114 MCFGE) per day. May 2009 averaged approximately 4,132 BOEs
(24,792 MCFGE) per day of production. Our average production for the month of
May has grown by approximately 11% over April. No additional wells were put on
stream. Approximately 42% of the production was oil and natural gas liquids
(NGL) and 58% was natural gas.
"Our ongoing production increases demonstrate the effect of Bubble Point
Technology in the Hunton Resource Play," stated Mr. Sandy Andrew, President &
COO of Petroflow.
Mr. John Melton, CEO of Petroflow added, "Our investment in the Hunton
Play in Oklahoma is based on two principle elements. First, this activity is a
low risk enterprise with predictable production curves; and second, the use of
this type of technology is repeatable in many areas."
The Hunton Resource Play in Oklahoma has an aerial extent of
approximately 16 million acres. Assuming 10% of the land is prospective, the
prospective resource could be as high as 6.2 Tcfe(1).
Starting in February 2009, Petroflow began to report ("NGL") volumes from
its Oklahoma operations in accordance with the new forms of midstream
processing contracts. This change initially resulted in an approximate
increase of 5% in Petroflow's barrel of oil equivalent volumes. In the second
quarter of 2009, as final contract revisions took effect, an additional
increase of approximately 7% occurred. The midstream contracts which prompted
the reporting change provide direct compensation for NGL volumes. The new
prices have been staging into effect since the agreements were finalized in
May 2008 with final phase in during May 2009. The full reserves value of these
positive changes is reflected in Petroflow's year end 2008 reports.
Other Production Areas
Our Texas and Alberta properties continue to produce and provide
consistent cash flow for operations.
(1) "The Hunton formation has been geologically proven to underlie
approximately 1/3 of the State of Oklahoma at varying depths and in
varying thicknesses and percentages of permeability and porosity.
While not definitive, our geological investigations to date have
allowed us to conclude that 10% or more of the formation could
exhibit the combination of characteristics necessary to allow for
commercial exploitation. Based on our historical performance, the
calculations generate up to 6.2 Tcfe of prospective resource. At
present, Petroflow has access to mineral rights representing only
75.2 Bcfe on a proved undeveloped plus probable basis. Although some
of the rest of this hydrocarbon potential is under lease by other oil
and gas companies, our work to date has proven that much of these
potential lands would be available for lease."
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
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 and applying engineering data, geologic
data, and accumulated operating and production knowledge, technology change
and failure, 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 and United States 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.
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 has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
For further information:
For further information: Mr. John Melton, CEO, Petroflow Energy Ltd.,
(985) 796-8080, www.petroflowenergy.com; Mr. Duncan Moodie, CFO, Petroflow
Energy Ltd., (403) 539-4320, www.petroflowenergy.com