Petroflow Energy Ltd. (PED), Wednesday said it terminated a Letter of Intent or LOI with a third party, announced previously in February, 2009. LOI is a document outlining an agreement between two or more parties before the agreement is finalized.
The Calgary, Canada-based company said it failed to agree the mutually acceptable terms with the vendor, having evaluated the properties identified in the LOI.
Petroflow recently released their updated Reserves Report as on December 31, 2008 and had confirmed the renewal of their borrowing base under its bank loan facility.
John Melton, President and Chief Executive Officer, Petroflow said "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."
PED is currently trading at $0.88, up $0.02 or 2.33%, on the Amex.
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