PetroBakken Energy Ltd.
TSX : PBN

PetroBakken Energy Ltd.

May 18, 2010 19:53 ET

PetroBakken Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - May 18, 2010) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN), a 58% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce that the Board of Directors of PetroBakken has approved a normal course issuer bid (the "NCIB").

The Toronto Stock Exchange ("TSX") has accepted PetroBakken's notice to commence the NCIB to purchase outstanding shares on the open market, in accordance with the rules of the TSX. As approved by the TSX, PetroBakken is authorized to purchase up to 9,431,255 shares, representing approximately 5% percent of the currently issued and outstanding shares of PetroBakken. As of today's date, there are 188,625,099 shares outstanding. On any trading day, PetroBakken will not be permitted to purchase more than 151,430 shares.

PetroBakken is authorized to make purchases during the period from May 17, 2010 to May 18, 2011, or until such earlier time as the NCIB is completed or terminated at the option of PetroBakken. Any shares PetroBakken purchases under the NCIB will be purchased in the open market through the facilities of the TSX and other registered marketplaces at the prevailing market price at the time of the transaction. All shares acquired under the NCIB will be cancelled.

PetroBakken believes from time to time, the market price of our shares may not reflect their underlying value. Our strong balance sheet and cash flow present us with the opportunity to capitalize on circumstances when the valuation of PetroBakken in the market, in our opinion, does not fairly represent the value and potential of our asset base.

PetroBakken Energy Ltd. is a premier light oil production company combining, high growth, long-life Bakken reserves and production with legacy 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.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to PetroBakken's normal course issuer bid. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by PetroBakken that actual results achieved during the forecast period will be the same in whole or in part as those forecast. 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.

Contact Information

  • PetroBakken Energy Ltd.
    John D. Wright
    Chairman of the Board and Chief Executive Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    R. Gregg Smith
    President and Chief Operating Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    Peter D. Scott
    Senior Vice President and Chief Financial Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    William A. Kanters
    Vice President Business Development and Corporate Planning
    403.750.4400
    ir@petrobakken.com
    www.petrobakken.com