Petroflow Energy Ltd.
TSX VENTURE : PEF
AMEX : PED

Petroflow Energy Ltd.

October 14, 2008 19:21 ET

Petroflow Energy Ltd. Announces September 2008 Operations Update

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2008) - Petroflow (TSX VENTURE:PEF) (AMEX:PED) is pleased to provide an update regarding September 2008 operational results including the current status of Oklahoma drilling activities.

Overall Operations

During the month of September, 2008 our exit rate was 3,065 BOEs (18,390 mcfe). We averaged approximately 3,110 BOEs (18,660 mcfe) per day of production during September of which approximately 18% was oil and 82% natural gas and associated liquids. Our average daily production, net to our working interest, increased by 10% over August 2008. "The achievement of this significant production benchmark by Petroflow is a testimony to the hard work and dedication of our employees as well as our unwavering belief in the Oklahoma Hunton Resource Play," stated Company President, Mr. John Melton.

Oklahoma Drilling Activity

Petroflow has completed drilling its first production well outside the original Farmout area and is presently in the completion process. Based on a successful completion, the Company anticipates commencement of dewatering leading to production by early November 2008.

To date we continue to enjoy a 100% success rate in our Oklahoma drilling activity. Our average daily production net to our working interest in the field increased 10% over August 2008.

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



DRILLING ACTIVITY

Total wells on production as at September 1, 2008 47
Wells brought on production to October 5, 2008 1
Wells currently drilling 3
Wells in completion phase 3
Salt water disposal wells drilled 4
Wells awaiting hookup 1
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TOTAL 59


Other areas

The Texas and Alberta properties continue to produce at a steady rate and provide a consistent 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 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 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
    (403) 695-1006 Or Toll Free: 1-866-264-0743
    Website: www.macamgroup.com
    or
    Investor Awareness, Inc.
    Tony Schor or James Foy
    (847) 945-2222
    Website: www.investorawareness.com
    or
    Petroflow Energy Ltd.
    John Melton
    President & CEO
    (504) 453-2926
    or
    Petroflow Energy Ltd.
    Duncan Moodie
    CFO
    (403) 539-4311
    Website: www.petroflowenergy.com