Petroflow Energy Posts May Production Increases
The estimated peak production rate for the month of May 2009 was 4,519 BOEs (27,114 MCFGE) per day. May 2009 averaged approximately 4,132 BOEs (24,792 MCFGE) per day of production. Our average production for the month of May has grown by approximately 11% over April. No additional wells were put on stream. Approximately 42% of the production was oil and natural gas liquids (NGL) and 58% was natural gas.
"Our ongoing production increases demonstrate the effect of Bubble Point Technology in the Hunton Resource Play," stated Sandy Andrew, President & COO of Petroflow.
John Melton, CEO of Petroflow added, "Our investment in the Hunton Play in Oklahoma is based on two principle elements. First, this activity is a low risk enterprise with predictable production curves; and second, the use of this type of technology is repeatable in many areas."
The Hunton Resource Play in Oklahoma has an aerial extent of approximately 16 million acres. Assuming 10% of the land is prospective, the prospective resource could be as high as 6.2 Tcfe.
Starting in February 2009, Petroflow began to report ("NGL") volumes from its Oklahoma operations in accordance with the new forms of midstream processing contracts. This change initially resulted in an approximate increase of 5% in Petroflow's barrel of oil equivalent volumes. In the second quarter of 2009, as final contract revisions took effect, an additional increase of approximately 7% occurred. 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 with final phase in during May 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.