PetroBakken Announces Intent to Repurchase and Cancel a Minimum of US$450 Million Principal Amount of the 3.125% Senior Unsecured Convertible Bond Issue 2010/2016

CALGARY, ALBERTA--(Marketwire - Jan. 24, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR RELEASE OVER UNITED STATES WIRE SERVICES

PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN), is pleased to announce that, further to a tendering process conducted by our agent, ABG Sundal Collier Norge ASA for the Company's 3.125% Senior Unsecured Convertible Bond Issue bearing ISIN NO 001 0563240 (the "Existing Bonds"), we have received qualifying offers to tender in excess of our targeted purchase amount of US$450 million at a price between US$95,000 to US$100,000 per US$100,000 of principal amount. Our intent is to repurchase and cancel a minimum of US$450 million of principal amount of the Existing Bonds, subject to the successful completion of our previously announced high yield bond offering.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The securities referenced herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States except in transactions exempt from or not subject to the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable state securities laws.

PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.

Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the completion of the Notes Offering and the proposed future repurchase of the Existing Bonds. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the market conditions and the ability to complete the proposed transactions. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with general economic and market conditions impacting the successful completion of the Notes Offering and repurchase of Existing Bonds on acceptable terms. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.