PetroGlobe Inc.

PetroGlobe Inc.

March 02, 2010 12:49 ET

PetroGlobe Announces Proposed Private Placement

CALGARY, ALBERTA--(Marketwire - March 2, 2010) - PetroGlobe Inc. ("PetroGlobe" or the "Corporation") (TSX VENTURE:PGB) announced today that it plans to raise, by way of a brokered private placement, up to $1,820,000 through the issuance of 2,000,000 Common Shares and 3,500,000 Flow Through Common Shares at $0.28 per Common Share and $0.36 per Flow Through Common Share. The placement is expected to close March 10, 2010 and is subject to the receipt of necessary regulatory approvals. The common shares will be subject to a four-month hold period from the date of closing.

PetroGlobe has agreed to pay a finder's fee to brokers or other third parties equal to 6% of the gross proceeds realized from sales made to purchasers referred to the Corporation by the finders and will also issue warrants to the finders equal in value on exercise to 6% of those gross proceeds. The warrants will have an exercise price of $0.28 and expire on March 10, 2011. The Corporation has retained Burgeonvest-Bick Securities Limited to assist in marketing the offering on a best efforts basis.

PetroGlobe will use the net proceeds for qualifying exploration expenditures in Alberta Canada.


PetroGlobe's focus is on high working interest, company-operated properties in Alberta, including Pembina Cardium light oil, Pembina Edmonton Sands natural gas and Sawtooth oil in the Grand Forks/Taber area of southern Alberta. PetroGlobe is listed on the TSX Venture Exchange and trades under the symbol PGB.

Forward-looking information

This PetroGlobe Inc. news release may contain forward-looking information relating to business strategy, geographic areas of activity, capital expenditures, future drilling, drilling costs, production rates, cash flow, investment payouts and other matters. This information is based on PetroGlobe's current expectations and assumptions as to a number of factors, including access to capital, availability of drilling rigs, weather conditions, drilling success, resulting reserves production, ability to tie-in production, decline rates, commodity prices, exchange rates, interest rates and general economic and industry conditions. The material assumptions applied were that PetroGlobe Inc. continues its exploration and development focus in Alberta, sufficient cash is available to fund capital programs, through existing cash balances and future capital raises on acceptable terms, drilling costs are maintained at expected levels, drilling results, reserves and production are within expectations and there is sufficient access to transportation, processing facilities, commodity prices and sales markets. If those expectations and assumptions prove to be incorrect, or factors change, then actual results could differ materially from the forward-looking information contained in this news release.

Barrels of oil equivalent

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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