Petroflow's (PED) Subsidiaries File Chapter 11 Bankruptcy

On May 25, 2010, Petroflow's (NYSE: PED) subsidiaries, North American Petroleum Corporation USA and Prize Petroleum, LLC, filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the District of Delaware. The reorganization cases are being jointly administered under the caption "In re North American Petroleum Corporation USA, Case # 10-11707 (CSS)" (the "Chapter 11 Cases").

The Debtors continue to operate their business in the ordinary course as "debtors-in-possession" under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court. In connection with the Chapter 11 Petitions, the Debtors filed certain "first day" motions, including motions seeking Court approval to honor and pay outstanding employee obligations and use of cash collateral to support the Debtors' operations during the Chapter 11 Cases. Access to cash collateral will enable the Debtors to continue to honor their post-bankruptcy obligations when they come due in the ordinary course of business. A hearing on the first day motions is scheduled for Friday, May 28, 2010, at 11:00 AM (EDT) before the Honorable Kevin Carey in Wilmington, Delaware.