PetroBakken Announces Third Quarter Operational Update and Planned Fourth Quarter Activities

CALGARY, ALBERTA--(Marketwire - Oct. 11, 2012) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN) is pleased to provide an update on third quarter operations and planned fourth quarter activity.

Our third quarter average production was 38,400 barrels of oil equivalent per day ("boepd") (84% light oil and NGLs), based on field estimates, comprised of over 15,800 boepd from the Bakken business unit, 14,700 boepd from the Cardium business unit, and the remainder from the Saskatchewan Conventional and AB/BC business units. This production level is relatively flat to the third quarter of 2011, primarily resulting from the disposition of producing assets in the first half of 2012 and a delayed start to our second half 2012 capital program. Production for September 2012 was 39,200 boepd based on field estimates, a slight increase over second quarter 2012. Currently, as a result of routine maintenance of individual wells and facilities as well as restricted production, we estimate that we have approximately 1,500 boepd of additional productive capacity that is expected to be brought on production in the fourth quarter.

We executed an aggressive drilling program in the third quarter with 82 net wells drilled, representing a 17% increase over the same period last year. Drilling activity focused primarily on the Bakken and Cardium business units, where 40 and 32 net wells were drilled, respectively, with an additional 10 net wells drilled in our Saskatchewan Conventional business unit. We were also busy completing wells, with 46 net wells completed during the quarter, including 30 net wells in the Bakken business unit and 8 net wells in each of the Cardium and Saskatchewan Conventional business units.

After bringing 52 net wells on production in the third quarter, we had 43 net wells (23 in the Cardium, 17 in the Bakken) either waiting on completion or completed and waiting to be brought on production. The second half of the year is always very active for PetroBakken, and we expect our rate of drilling and bringing wells on production in the fourth quarter of 2012 to outpace the activity levels achieved last year, as summarized in the following table.

We currently have 20 drilling rigs operating, with 9 drilling in the Cardium fairway of Alberta, 8 in the Bakken fairway in southeast Saskatchewan, 2 on conventional prospects in southeast Saskatchewan and 1 in our new resource play area in central Alberta. We plan to drill 25 net wells in the Cardium, 36 net wells in the Bakken and 21 net wells in our other areas in the fourth quarter, achieving our current plan of 220 total net wells drilled in 2012.

A delayed start in our second half capital program has resulted in third quarter production levels being flat to the second quarter of this year. However, reduced industry activity has provided increased access to services which allows us to catch up on our program. The execution of the final stage of our 2012 capital program is expected to result in approximately 105 net wells being put on production in the fourth quarter. This is up from 85 net wells in the same period last year, positioning us to achieve our exit rate production guidance of 52,000 to 56,000 boepd.

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.

BOEs. Natural gas volumes have been converted to barrels of oil equivalent ("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.

Forward Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to future results from operations, future capital costs, future production rates, proposed exploration and development activities (including the number of wells to be drilled, completed and put on production), capital spending levels, and anticipated sources of capital. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the success of future drilling, completion, recompletion and development activities, the performance of new and existing wells, prevailing commodity prices and economic conditions, the availability and cost of labour and services, timing of pipeline and facilities construction, access to third party facilities and weather and access to drilling locations. 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 the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. 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.