PetroGlobe Inc.

PetroGlobe Inc.

December 01, 2008 16:53 ET

PetroGlobe Announces Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2008) - PetroGlobe Inc. ("PetroGlobe" or the "Corporation") (TSX VENTURE:PGB) is pleased to announce its operating and financial results for the three months ended September 30, 2008.

Third Quarter Highlights and significant items:

- Record sales production of 205 BOE/D, a 21% increase over the previous quarter and a 16% increase over the comparative 2007 period

- Achieved funds from operations of $280,000 for the quarter

- Completion of private placement through the issuance of 3,564,000 common shares on a flow through basis at a price of $0.25 per common share raising $891,000

- Strategic asset divestiture in the Palo Duro region of Texas for proceeds of $750,000 USD

- Commenced negotiations which resulted in the sale of the Company's Consulting Segment for gross proceeds of $446,000

- Working capital surplus of $2.6 million and cash balance of $2.5 million

- Commenced the Company's fall drilling program

The following table summarizes some of the key financial results. Complete financial statements with accompanying notes along with management's discussion and analysis have been filed on SEDAR ( ).

Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
Production (boe/d) 205 158 177 157

Highlights ('000s Canadian $)
Petroleum and natural gas revenues 935 376 2,572 1,653
Funds from (used in) operations(1) 280 (1) 692 (388)
Net loss (12,711) (589) (13,292) (2,543)

Per Common Share
Net loss (0.27) (0.01) (0.30) (0.08)
Funds from operations(1) 0.01 0.00 0.01 (0.01)
(1) Funds from operation as presented does not have any standardized meaning
prescribed by Canadian GAAP and therefore may not be comparable with
calculation of similar measures for other enties.

Forward-Looking Information

This PetroGlobe Inc. news release contains 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 Inc.'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 on Alberta and Texas sufficient cash is available for its drilling program through existing balances and future capital raising 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 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.

Volumes reported in barrels of oil equivalent (BOE) are based on conversion of natural gas to oil at six thousand cubic feet per barrel (6 Mcf:1 bbl). BOE may be misleading, particularly when used in isolation, since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release should not be construed to be a solicitation for the purchase of the corporation's common shares.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information