CALGARY,
ALBERTA--(Marketwire - March 16, 2010) - PetroGlobe Inc. (TSX
VENTURE:PGB) ("PetroGlobe" or the
"Corporation") announces that it has closed its previously announced private
placement of common shares and flow through common shares. Both the common
share issuance and the flow through common share issuance were oversubscribed.
PetroGlobe
issued 2,740,389 flow through common shares at a price of $0.36 per flow
through common share. The Corporation will close an additional 835,000 flow
through common shares on March 24, 2010. The Corporation also closed the
previously announced common share private placement through the issuance of
2,125,000 common shares at a price of $0.28.
Gross
proceeds from the common share and flow through common share issuance will be
$1,882,140.
ABOUT PETROGLOBE INC.
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.