Petra Petroleum Inc. Update Regarding Proposed Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) -

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Further to its press release dated May 5, 2011 Petra Petroleum Inc. (TSX VENTURE:PTL) (the "Corporation") wishes to confirm that closing of the brokered private placement (the "Private Placement") of up to 25,000,000 common shares of the Corporation ("Common Shares") at a purchase price of $0.40 per Common Share for aggregate gross proceeds of up to $10,000,000 is expected to occur by the end of July.

Although a definitive agency agreement between the Corporation and Jones Gable & Company Limited (the "Agent") has not yet been executed and there is no assurance the Private Placement will close as expected, based on preliminary information obtained by the Agent regarding potential subscribers to the Private Placement, the Agent has indicated to the Corporation that the Private Placement may result in the creation of insiders and a new "control person" (as such term is defined in the policies of the TSX Venture Exchange). The creation of a new control person through the issuance of Common Shares would require shareholder approval pursuant to the policies of the TSX Venture Exchange.

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the proposal to complete the Private Placement including statements regarding the terms and conditions of the Private Placement and the anticipated timing for closing of the Private Placement. Readers are cautioned to not place undue reliance on forward-looking statements. Forward-looking statements are based on certain key assumptions made by the Corporation, including assumptions regarding the ultimate terms of the proposed Private Placement, the satisfaction of conditions to the completion of the Private Placement and the receipt of all regulatory and stock exchange approvals. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Private Placement, that the ultimate terms of the Private Placement will differ from those that currently are contemplated, that the Private Placement will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The forward-looking statements in this press release are made as of the date of this release and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements whether as a result of new information or otherwise, except as required by applicable securities laws. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation or its financial or operating results or (as applicable) their securities.