Petroflow Cancels LOI on Hunton Acquisition
Petroflow has terminated a Letter of Intent (LOI) with a third party that was announced on February 6, 2009.
Petroflow President & CEO, Mr. John Melton reports, "upon further evaluation of the properties identified in the LOI, we were not able to agree to mutually acceptable terms with the vendor. Consequently, we have agreed to terminate the transaction."
Petroflow recently released their updated Reserves Report for December 31, 2008 and also confirmed the renewal of their borrowing base under its bank loan facility.
"We have chosen a deliberate path to achieve our goals. While the current commodity prices have had an impact on our timeline, our business plan is sound and we are well positioned to advance our presence in the Hunton Resource Play as commodity prices become more favorable. Petroflow has an experienced management team that is taking steps to manage the current economic situation and continue to move the Company forward," said John Melton.