PetroGlobe Inc.

PetroGlobe Inc.

November 29, 2007 19:07 ET

PetroGlobe Inc.: 2007 Third Quarter Report

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2007) - PetroGlobe Inc. (TSX VENTURE:PGB) ("PetroGlobe" or the "Company") announces that it has filed with Canadian securities regulatory authorities its financial statements for the nine months and quarter ended September 30, 2007 and the accompanying Management's Discussion and Analysis. These filings are available for review under the Corporation's SEDAR profile at

Third Quarter Highlights

- Q3 average sales volume was 946 thousand standard cubic feet equivalent per day (mscfe/d) compared to 834 mscfe/d. This is up 10% over prior year period and 5% below sales volumes for Q2 2007.

- Successfully drilled final three wells under farm-in in Alberta, which earned an additional 1,920 gross acres.

- Completed the tie-in of one well in Alberta.

- Fracture stimulated three wells and completed coil tubing cleanouts in three additional wells.

- Completed private placement, which raised $2.1 million dollars.

- Commenced tie in of 3 additional wells that came on stream in October 2007.

- Completed the production perforation and work over of the McIntosh #1-76 well.

During Q3 2007 PetroGlobe set in motion a number cost reduction and restructuring initiatives that have vastly improved the Company's netbacks and profitability. With the majority of the cost reduction initiatives now complete, PetroGlobe is aggressively growing shareholder value through increased production volumes and cash flow.

Oil and Gas Operation Update

Initial results from the testing of the McIntosh 1-76 well appear favorable and the Company plans to conclude testing by the end of the year. This will help determine the initial deliverability and potential reserves associated with the well. Recent flow tests and static gradient tests carried out on the McIntosh 1-77 well confirmed a work-over is required to maximize production capability. PetroGlobe is evaluating options associated with the cleanout and subsequent completion of the McIntosh 1-77.

The Company's Alberta production is currently 1.3 mmscf/d net to the Company. The Company plans to production perforate three additional wells prior to year-end. The combination of increasing natural gas prices and decreasing cost of service will continue to improve economics for future Alberta tie-ins. The Company has 19 wells in inventory in Alberta.

Commodity prices remain volatile and although natural gas prices have started to increase as we enter into winter heating they still lag relative to oil prices. The government of Alberta recently announced changes to the provinces royalty regime. The Company's initial assessment is that our lower productive gas wells in Alberta, which represent approximately 60% of our production should benefit from the new royalty program, while some of our higher productivity wells may have increased royalties.


PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. There are 36.0 million shares outstanding. The 52-week range is $0.28-$2.95. Market capitalization is $12.2 million based on the most recent closing price of $0.34.

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


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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