Petroflow Secures Financial Hedge Position

Petroflow has entered into a financial hedge position with respect to 6800 MMBTU per day of gas production. The hedge consists of 6800 MMBTU per day at a fixed price of $7.25 (USD) per MMBTU for a period from October 1, 2009 to December 31, 2010, followed by a fixed price of $5.33 (USD) per MMBTU for the period January 1, 2011 to September 30, 2012.

Mr. Sandy Andrew, President & COO of Petroflow stated, "In light of the current economic environment, we elected to secure a price that is attractive in relationship to the current spot market prices for natural gas. This specific hedge agreement covers over 25% of our current working interest production levels and provides Petroflow with a stabilized price which is in excess of current market prices. Combined with existing hedges, the Company has downside price protection on over 40% of its current working interest production for the next two years."

"The degree of uncertainty in the oil and gas marketplace encouraged us to adopt this hedging strategy as insulation against further price declines. This hedge agreement will provide greater certainty in our future gas revenues in these challenging times," added Mr. Andrew.