2009-02-26-2009-02-06

Canceled plans to acquire producing assets in OK Hunton resource play, gaining 2,000 BOE/d.

Petroflow Energy Ltd., Calgary, (Toronto: PEF; NYSE Alternext: PED) has canceled its plans to acquire additional producing oil and gas assets in Oklahoma from an undisclosed seller for US$22 million in cash and approximately US$18 million in shares in a total deal valued at US$40 million. The assets are in the company's core Hunton play. No further details were disclosed. Petroflow chief executive John Melton says, "Upon further evaluation of the properties identified in the letter of intent, we were not able to agree to mutually acceptable terms with the vendor. Consequently, we have agreed to terminate the transaction."