Petroflow Energy Ltd. Reports intention to undertake a normal course issuer bid

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

    CALGARY, Feb. 3 /CNW/ - Petroflow Energy Ltd. reports that it intends to
conduct a normal course issuer bid ("NCIB"), through the facilities of the TSX
to purchase for cancellation up to 500,000 Common Shares, representing
approximately 1.69% of its issued and outstanding share capital. The Company
previously commenced an NCIB effective December 22, 2008 through the
facilities of the TSX Venture Exchange. As a result of listing its shares on
the TSX, the Company has initiated a new NCIB. The Company plans to fund its
share repurchases under the NCIB from cash flow and available financing under
its bank loan. The board of directors of the Company is of the view that the
current market value of the Common Shares does not reflect their underlying
value. The directors of the Company have thus concluded that the purchase of
Common Shares under this NCIB is an appropriate use of the Company's funds and
is in the best interests of the Company. The NCIB will increase the
proportionate share interest in the Company of those shareholders who retain
their Common Shares. All Common Shares purchased by the Company will be
restored to the status of authorized but unissued shares, thereby increasing
the respective proportionate share interests of all remaining shareholders on
a pro rata basis. The NCIB also affords an increased degree of liquidity to
the Company's shareholders who elect to dispose of their Common Shares.
    It is expected that the NCIB will commence on February 6, 2009 and will
continue until February 5, 2010 or such earlier date if the Company purchases
the maximum number of Common Shares. Purchases will be made through Leede
Financial Markets Inc. Under the rules of the TSX, the Company may purchase a
maximum of 1,829 Common Shares per day on or before March 31, 2009 pursuant to
TSX Staff Notice 2008-0005, and 1000 Common Shares per day thereafter.
    As of February 3, 2009, the Company had 29,565,094 Common Shares issued
and outstanding.
    Pursuant to the previous NCIB, the Company repurchased 6,000 Common
Shares through the facilities of the TSX Venture Exchange, at a weighted
average price of $2.195 per Common Share.

    On behalf of the Board of Directors
    Petroflow Energy Ltd.

    Mr. John Melton
    President & CEO

    Forward-Looking Statements

    This news release contains statements about potential purchases of common
shares for cancellation under the normal course issuer bid, the related
methods of funding as well as the timing and extent of such purchases. These
statements may constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities legislation as they
involve the implied assessment that the purchase of common shares can be
consummated in the future, at a price that will create value for the Company's
shareholders, 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,
the ability to generate sufficient cash flow and/or access external debt to
fund the share purchases, 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 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.

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

    %SEDAR: 00003294E          %CIK: 0001359154

For further information:

For further information: Petroflow Energy Ltd.: John Melton, President &
CEO, (504) 453-2926; Duncan Moodie, CFO, (403) 539-4311,; Investor Awareness, Inc.: Tony Schor or James Foy,
(847) 945-2222,

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