Petroflow Energy Ltd. reports April production increases through Bubble Point Technology

    (TSX Symbol - PEF; NYSE Amex Symbol - PED)

    CALGARY, June 11 /CNW/ -

    Corporate Production Update

    "Our primary activity is in Oklahoma where we use Bubble Point Technology
to extract residual oil, gas and natural gas liquids from the Hunton Resource
Play. In addition to the Hunton being a very large opportunity for Petroflow,
the use of Bubble Point Technology has resulted in the steady increase of our
production rates and we are most pleased to report this to our shareholders",
stated Mr. Sandy Andrew, President and COO of the Company.
    The estimated peak production rate for the month of April 2009 was 4,046
BOEs (24,276 MCFGE) per day. April 2009 averaged approximately 3,727 BOEs
(22,362 MCFGE) per day of production. Our average production for the month of
April has grown by approximately 2% over March, even though no additional
wells were put on stream in April. Approximately 31% of the production was oil
and natural gas liquids and 69% was natural gas.
    "The Hunton represents a low risk enterprise for Petroflow since we use
Bubble Point Technology to recover a resource that is already identified. With
the excellent production performance we are experiencing and the decrease we
have been able to achieve in capital costs, this play still provides
tremendous upside opportunity for Petroflow, even with current forecasted
commodity prices."
    The Hunton Resource Play in Oklahoma has an areal extent of approximately
16 million acres. Assuming 10% of the land is prospective, the resource
potential could be as high as 6.2 Tcfe.(1)
    Starting in February 2009, Petroflow began to report natural gas liquids
("NGL") volumes from its Oklahoma operations in accordance with the new forms
of midstream processing contracts. This change has resulted in an approximate
initial increase of five percent in Petroflow's barrel of oil equivalent
volumes. In the second quarter of 2009, as a contract revision takes effect,
an additional increase of approximately three percent will occur. 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 and will continue to phase in
during the first half of 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 success, the
        calculations generate up to 6.2 Tcfe of potentially recoverable
        hydrocarbons. 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

    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 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,; Mr. Duncan Moodie, CFO, Petroflow
Energy Ltd., (403) 539-4320,

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890