News Release - PETROFLOW ENERGY LTD - 3-1-2010

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News Release - PETROFLOW ENERGY LTD - 3-1-2010 Powered By Docstoc
					  
                                                                                                        Exhibit 99.1
                                                                                                                     
                                           FORM 51-102F3
                                      MATERIAL CHANGE REPORT
  
Item 1                        Name and Address of Company
  
                       Petroflow Energy Ltd.   
                       3400, 150-6 th Avenue SW   
                       Calgary, Alberta T2P 3Y7   
                       (303) 296-7070
  
Item 2                        Date of Material Change
  
                       February 16, 2010.
  
Item 3                        News Release
  
                       Press Release dated February 23, 2010
                       Distributed by CNW in Canada and the US.
  
Item 4                        Summary of Material Change
  
                       The Company has amended and updated its banking facility by signing a forbearance agreement.
  
Item 5                      Full Description of Material Change 
  
5.1                            Full Description of Material Change 
  
                       PLEASE SEE ATTACHED PRESS RELEASE 5.2                                        Disclosure for
                       Restructuring Transactions N/A
  
Item 6                        Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
  
                        N/A
  
Item 7                        Omitted Information
  
                        NO INFORMATION HAS BEEN OMITTED
  
Item 8                        Executive Officer
  
                       Mr. Tucker Francicus  Interim Chief 
                       Financial Officer  Petroflow Energy Ltd. 
                       1401 17 th Street, Suite 310  Denver, 
                       Colorado 80202 USA  (303)296-7070
  
Item 9                        Date of Report
  
                        February 26, 2010
  

                                                                                                                     
                                                                                                                     
  
  
                                                                                                                                                   
  
  




FOR IMMEDIATE RELEASE - February 23, 2010 - DENVER, COLORADO - PETROFLOW
ENERGY LTD. (TSX Symbol - PEF; NYSE Amex Symbol - PED)

PETROFLOW ENERGY LTD. ANNOUNCES FORBEARANCE AGREEMENT

Petroflow Energy Ltd. (“Petroflow” or the “Company”) today announced that it has entered into a
forbearance agreement with its banking syndicate in connection with certain events of defaults
under its amended and restated credit agreement, as amended (the “Credit Facility”).  Under terms
of the forbearance agreement the Company has agreed to increase the interest rate on its Tranche
A and Tranche C loans to 7.5% per annum.  The forbearance agreement also requires that the 
Company start making monthly principal reductions payments in the amount of $1 million per month
commencing immediately.  In connection with the forbearance agreement, the Company entered 
into additional security agreements related to additional collateral required by the lenders.  The 
Company currently has $106 million outstanding under its Credit Facility with a borrowing base
deficiency of $31 million.
  
The forbearance period expires on March 7, 2010, provided that if the Company has entered into a
purchase and sale agreement to sell its Oklahoma oil and gas properties by March 7th,   then the
forbearance period is extended until May 1, 2010.  The forbearance period will automatically 
terminate, and the lenders may accelerate all amounts under the Credit Facility upon the
occurrence of any further defaults under the forbearance agreement or the Credit Facility.  There 
can be no assurance that the Company will be able to negotiate an amendment to the Credit
Facility or additional forbearances, that such amendment or forbearances will be on terms
acceptable to the Company, or that the Company will be able to complete any of the strategic
alternatives on satisfactory terms, or at all.  The failure of the Company to remedy existing defaults 
under the Credit Facility may impair the Company’s operations and future prospects.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking statements" or "forward-looking information" within the meaning
of applicable securities legislation as they involve our ability to restructure our debt or complete strategic alternatives. Forward-looking
statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and factors that could
cause actual results to differ materially from those anticipated by Petroflow and described in the forward-looking statements. These risks,
uncertainties and factors include, but are not limited to, the potential adverse impact of continuing defaults under its Credit Agreement on the
Company's liquidity or results of operations, the Company’s ability to raise sufficient additional equity, the notion that the ongoing value of the
Company’s oil and gas reserves will continue to support the Company’s outstanding indebtedness under its Credit Agreement, other adverse
general economic conditions that may negatively impact the Company and its ability to maintain as well as repay borrowings, operating
hazards, drilling risks, inherent uncertainties in interpreting and applying engineering data, geologic data, and accumulated operating and
production knowledge, technology change and failure, competition, reduced availability of drilling and other well services, fluctuations in oil
and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange
rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and
development of oil and gas properties. Additional information on these and other factors, which could affect Petroflow's operations or
financial results, are included in Petroflow's reports on file with Canadian and United States securities regulatory authorities. We assume no
obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise
required under securities law.


For further information, please contact:
  
Petroflow Energy Ltd.                                                        Petroflow Energy Ltd.
Kyle R. Miller, CEO                                                          Tucker Franciscus, Interim CFO
303-296-7070                                                                 303-296-7070
www.petroflowenergy.com                                                      www.petroflowenergy.com
  
                         The Toronto Stock Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this news release.