PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

October 19, 2007 14:29 ET

PetroGlobe Inc.: 2007 Exploration and Production Operational Update

CALGARY, ALBERTA--(Marketwire - Oct. 19, 2007) - PetroGlobe Inc. ("PetroGlobe" or the "Corporation") (TSX VENTURE:PGB) is pleased to announce that it has made significant progress in its efforts to maximize shareholder value since the Corporation's Board of Directors and management were re-organized at the Corporation's Annual General Meeting in June 2007. The following are some of the highlights that have been achieved to date:

- The company has achieved net sustained production of 1.4 million standard cubic feet per day (mmscf/d) or 240 barrels of oil equivalent per day (BOE/d)

- Reduction of over $400,000 in overhead expenses on an annual basis

- The engagement of Ryder Scott Company, L.P. as the Corporation's reservoir engineers

- Significant reduction in operating expense per mscf through increased operational control

- Hiring of an well-qualified and experienced Chief Financial Officer

- Streamlined staff to allow a more significant portion of cash flow to be spent on capex

The Corporation is pleased to announce Arif Shivji, CA, MBA, CFA has been appointed Chief Financial Officer effective October 17, 2007. Prior to his appointment, Mr. Shivji was a Manager with PricewaterhouseCoopers Transaction Services where he assisted clients with M&A activity in Canada and the United Kingdom. He also has experience in a diverse range of areas including treasury, income tax, and public reporting. He holds a Bachelor of Commerce degree from University of Calgary and a Masters of Business Administration from the Richard Ivey School of Business. Mr. Shivji is a member of the Institute of Chartered Accountants of Alberta and is a charter holder with the Chartered Financial Analyst Institute.

ALBERTA PRODUCTION INCREASES

During the month of October the Corporation tied-in and brought on stream three new wells. Combined initial production from the wells was 1.8 mmscf/d or 900 mscf/d net to the Corporation. The wells are currently choked to 1.2 mmscf/d or 600 mscf/d net to the Corporation and production can be increased as natural gas prices improve. The increase in production from these three wells brings the Corporation's Alberta gross gas production to 3.0 mmscf/d, 1.4 mmscf/d net to the Corporation. Since June 30 the Corporation has tied in and brought on stream four wells increasing its production 40% or 350 mscf/d net to the Corporation. Further tie-ins are planned to be completed prior to year-end.

"We are excited about the timing of our growth in production as we head into the winter months, when natural gas prices typically reach seasonal highs", commented CEO Jason James. "We are also well positioned to add year-over-year reserves for the Corporation due to the production data we have acquired and the number of wells tied-in and on-stream. I am excited about Mr. Shivji joining our team and the contribution he will make as we continue to restructure the management team, and streamline operations in an effort to build shareholder value."

ALBERTA OPERATING COST REDUCTION

Effective October 1, the Corporation directly operates all of its wells in Alberta. Previously, the Corporation used contract operators to operate its wells in addition to its own field operator. This change will enhance netbacks through the reduction of operating costs as all operating costs are now fully controlled by the Corporation.

TEXAS OPERATIONS

During recent months the Corporation executed work over procedures designed at increasing production deliverability from the McIntosh 1-76 well. The Corporation is currently testing the 1-76 well to determine sustained deliverability rate.

In addition to the testing of the 1-76 well, the Corporation plans further testing on the McIntosh 1-77 well to determine its sustained flow. From the extended flow test of the 1-77 well the Corporation will determine if any work over procedures will be carried out. Once testing is complete PetroGlobe will finalize processing plant design and specifications.

STAFF CHANGES

Don McPherson, Vice President of Land and Business Development, has left PetroGlobe to pursue other interests.

PetroGlobe has further reduced corporate general and administrative costs through additional staff reductions.

The Corporation recently granted options to acquire up to 300,000 common shares to officers and employees in accordance with the Corporation's stock option plan.

ABOUT PETROGLOBE INC.

PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. There are 33.1 million shares outstanding. The 52-week range is $0.52 - $2.95. The Company's market capitalization is $19.5 million based on the most recent closing price of $0.59.

PetroGlobe Inc. carries on business directly in Canada. It conducts business indirectly in the United States through PetroGlobe Energy USA Ltd. Its wholly owned subsidiary, PetroGlobe (Canada) Ltd., is in the business of international oil and gas consulting.

Major exploration and production properties are in the Palo Duro basin of West Texas and the Cynthia, Drayton Valley, Breton, Warburg and Leduc areas of west-central Alberta.

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.

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