Petro Field Industries Inc.

Petro Field Industries Inc.

March 27, 2006 11:02 ET

Petro Field to Acquire a Business in the Industrial and Oilfield Services Sector

CALGARY, ALBERTA--(CCNMatthews - March 27, 2006) - Petro Field Industries Inc. (TSX VENTURE:PF) ("Petro Field" or the "Company") announces that it has entered into a letter of intent ("LOI") to acquire the business and assets of an oil and gas engineering and manufacturing services business. The proprietary products and services of the business to be acquired are complementary to the products of Petro Field and therefore should permit the Company to benefit from significant synergies. The LOI contemplates a purchase price for all of the assets, including current assets, all equipment and certain intangible assets, and certain liabilities, of approximately $8 million, which sum shall be paid by way of a combination of cash and common shares.

Petro Field estimates that, for fiscal 2007, the acquisition should generate revenue in excess of $32 million and EBITDA of more than $2.5 million.

Completion of the proposed acquisition is subject to a number of conditions, including but not limited to, the completion of satisfactory due diligence by Petro Field. The parties have agreed to complete this transaction on May 31, 2006, or within seven days of the Company completing its financial due diligence.

Petro Field Industries Inc. is a Calgary, Alberta - based fabricator of oil and natural gas production equipment. The Company also purchases, refurbishes as necessary, and sells used production equipment.

EBITDA is a useful supplemental earnings measure that does not have any standardized meaning pursuant to Canadian GAAP and therefore, as discussed herein, may not be comparable to EBITDA as calculated by other entities.

This News Release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Petro Field to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the markets for oil and gas and related products and services, political and economic conditions, the demand for the products and services provided by Petro Field, industry competition and Petro Field's ability to attract and retain both customers and key personnel.

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

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