PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

August 31, 2009 15:11 ET

PetroGlobe Announces Second Quarter 2009 Results

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2009) - PetroGlobe Inc. ("PetroGlobe" or the "Company") (TSX VENTURE:PGB) announces it has filed its interim consolidated financial statements for the quarter ended June 30, 2009 and accompanying Management's Discussion and Analysis with Canadian securities regulatory authorities. These filings are available for review under the Corporation's SEDAR profile at www.sedar.com.

2009 Second Quarter Highlights Include

- Acquired 2,880 gross, 2,752 net acres of multi zone oil and gas rights in south and central Alberta including 960 gross, 832 net acres of prospective Cardium rights in the immediate area of recent successful horizontal drilling activity

- Drilled and completed two shallow gas wells in the Pembina area which completed the final farm-in commitments and earned an additional 1,280 gross acres of shallow gas rights

- Drilled, completed and brought on stream one Sawtooth oil well resulting in earning of 640 acres of multi-zone prospects in the Grand Forks/Taber area and establishing a new oil play for the Company

- Expanded credit facility to $3.0 million of which $2.7 million is currently available to the Company

- Reduced operating costs in the Pembina area to $1.82/mcf from $1.92/mcf in the first quarter 2009

- Subsequent to June 30, 2009, the Company entered into a natural gas producer collar, for approximately 50% of its production from November 1, 2009 through to March 31, 2010 to reduce exposure to potentially lower natural gas prices. The collar has a floor of $4.30/ Gj and a cap of $5.11/ Gj

- Identified an estimated 350 boe/d production potential behind pipe

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 and Texas, 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.

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

ABOUT PETROGLOBE INC.

PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. PetroGlobe Inc. carries on business directly in Canada. It conducts business indirectly in the United States through PetroGlobe Energy USA Ltd. Major properties are in the Palo Duro basin of West Texas, Drayton Valley, Breton, Warburg and Leduc areas of west-central Alberta.

Neither 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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