Petra Petroleum Inc.

Petra Petroleum Inc.

December 22, 2009 13:18 ET

Petra Appoints New Board Members, Agrees to Transfer of Shares Within Escrow and Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2009) - Petra Petroleum Inc. (the "Company" or "Petra" TSXV: PTL) is pleased to announce that Michael Atkinson and Narinder Nagra were elected, along with previous incumbents Eric Boehnke and William McCartney, to the Company's board of directors at its Annual General Meeting held this morning. Mr. Atkinson was also appointed President and Chief Executive Officer.

Michael Atkinson is a self employed business consultant. He is presently a director of Canadian Phoenix Resources Corp. and Kobex Minerals Inc.

Narinder Nagra, Certified General Accountant, is the Senior Vice President of Quest Capital Corp., a mortgage investment corporation, and Chief Financial Officer of Ionic Capital Corp., a private loan and investment company, and Ionic Securities Ltd., a private corporate finance and investment company.

Mr. Atkinson and Mr. Nagra have entered into agreements to purchase 3,222,400 and 2,661,000 previously issued escrowed common shares, respectively, from current and former principals of the Company. Such agreements are subject to the approval of the TSX Venture Exchange. Upon closing, Mr. Atkinson will own approximately 12.3% and Mr. Nagra 10.2% of the issued and outstanding common shares of the Company.

The Company would like to thank former directors Larry Keller and Chadwick Wasilenkoff for their years of service to the Company.

The Company is also pleased to announce a non-brokered private placement of up to 10,000,000 units at a purchase price of $0.12 each for aggregate proceeds of $1,200,000. Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company at $0.20 for a period of two years. The common shares issued and the common shares underlying the warrants will be subject to a four month hold period. The funds will be used for general working capital purposes. The Company may pay a finder's fee equal to 7.5% of the private placement proceeds in cash and warrants equal to 7.5% of the units issued. The private placement is subject to the approval of the TSX Venture Exchange.


Michael Atkinson, President

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