Petroflow Energy Ltd.
TSX VENTURE : PEF

Petroflow Energy Ltd.

June 12, 2008 17:53 ET

Petroflow Energy Ltd. Announces May 2008 Operations Update

CALGARY, ALBERTA--(Marketwire - June 12, 2008) - PETROFLOW ENERGY LTD. (TSX VENTURE:PEF) -

Petroflow is pleased to provide this update regarding our May 2008 operational results including the current status of our Oklahoma drilling activities.

Overall Operations

During the month we averaged approximately 2,530 BOEs (15,190 mcfe) per day of production of which approximately 82% was gas and associated liquids. Our exit rate in May was 2,287 BOEs (13,720 mcfe). Overall, the daily average production for May increased by 3% over April 2008. Our exit production rate and overall average were affected by the sale of our Juniper property which closed on May 22, 2008. At the time of sale, daily gas production from Juniper was averaging 2,663 mcf (444 boe).


Oklahoma Drilling Activity

To date we have enjoyed a 100% success rate in our Oklahoma drilling activity. Our average daily production net to our working interest in the field increased 13% over April 2008.

Following is a table outlining the status of our drilling activities in our Hunton resource play.



DRILLING ACTIVITY

Total wells on production as at May 1, 2008 36
Wells brought on production to June 10, 2008 3
Wells currently drilling 3
Wells in completion phase 4
Salt water disposal wells drilled 3
Wells awaiting hookup 0
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TOTAL 49


Other areas

During May 2008, we finalized the previously announced sale of our New Mexico property for gross proceeds of $US 29 million (please refer to the new release dated May 28, 2008 for further information). The Texas and Alberta properties continue to produce at a steady rate and provide steady cash flow for operations.

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

Contact Information

  • Macam Investor Relations
    Cameron MacDonald
    President & CEO
    (403) 695-1006 or Toll Free 1-866-264-0743
    or
    Petroflow Energy Ltd.
    John Melton
    President & CEO
    (504) 453-2926
    or
    Petroflow Energy Ltd.
    Duncan Moodie
    CFO
    (403) 539-4311