Sandy Andrew, president & chief operatin officer of Petroflow Energy said, The Hunton Resource Play in Oklahoma continues to meet our production forecasts. Our strategy to employ Bubble Point Technology in the Hunton is working.
The Hunton Resource Play in Oklahoma has an arial extent of around 16 million acres. Assuming 10% of the land is prospective, the resource potential could be around6.2 Tcfe(1). Petroflow saw the opportunity represented in the Hunton and recognized the operational and economic fit for Bubble Point Technology. This combination of reservoir parameters has allowed us to grow from very modest levels to peak rates exceeding 4,000 BOE’s per day in less than three years, added Andrew.
Commencing in February 2009, Petroflow Energy commenced to report natural gas liquids (NGL) volumes from its Oklahoma operations in accordance with the new forms of midstream processing contracts. This change has resulted in an around initial increase of 5% in Petroflow Energy’s barrel of oil equivalent volumes. In the second quarter of 2009, as a contract revision takes effect, an additional increase of around three percent will occur. 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 and will continue to phase in during the first half of 2009. The full reserves value of these positive changes is reflected in Petroflow’s year end 2008 reports.
John Melton, Petroflow Energy chief executive officer stated, While we have enjoyed great success with our drilling program in the Hunton Resource Play in Oklahoma, we must consider the impact of the recent commodity prices for oil, gas and NGL’s. We chose to suspend our drilling program as a direct result of low commodity prices. However, we have been using this time effectively to position Petroflow for a quick ramp-up once the commodity prices reach a more favorable level.
