Petrobank Energy and Resources Ltd.
TSX : PBG.NT.A
TSX : PBG

Petrobank Energy and Resources Ltd.

January 23, 2006 16:56 ET

Petrobank Announces Oslo Financing

CALGARY, ALBERTA--(CCNMatthews - Jan. 23, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG) (TSX:PBG.NT.A) is pleased to announce that the Oslo Stock Exchange ("OSE") has approved its final prospectus for a proposed public offering and listing of up to C$30 million common shares in Norway (the "Offering").

The minimum offering is C$15 million and the maximum offering is $30 million. The indicative price range for the Offering has been set between NOK 66.40 (C$11.55) per share, being the five day weighted average trading price of the Company's Common Shares on the Toronto Stock Exchange from January 16, 2006 to January 20, 2006, and NOK 73.85 (C$12.85) per share, being the trading high on January 20, 2006. Accordingly, up to 2,597,403 Common Shares will be issued pursuant to the Offering. There are currently 63.2 million Petrobank common shares outstanding.

ABG Sundal Collier Norge ASA and DnB NOR Markets are joint-lead managers of the Offering, which is being made to the general public in Norway and other jurisdictions as permitted under relevant securities laws, provided that the Offering is not made to residents of Canada. In the four months from the completion of this Offering, the Common Shares purchased under the prospectus cannot be sold or in any other way be transferred to residents of Canada, including through the facilities of the Toronto Stock Exchange.

Subject to the completion of the minimum offering and obtaining 100 round lot holders in Norway, the Company anticipates that trading of its Common Shares will commence on the OSE on or about February 8, 2006. The prospectus has been filed on the OSE company disclosure system at www.oslobors.no and on Petrobank's website at www.petrobank.com.

Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units. The Canadian Business Unit combines conventional oil and gas operations with two higher potential coalbed methane opportunities. The Latin American Business Unit produces oil through two Incremental Production Contracts in Colombia and has finalized contracts on five new exploration blocks and three Technical Evaluation Areas covering a total of 2.0 million acres in the Llanos and Putumayo Basins. The Heavy Oil Business Unit owns 28,800 acres of oil sands leases with an estimated 1.3 billion barrels of bitumen-in-place and is constructing the WHITESANDS pilot project to field-demonstrate Petrobank's patented THAI™ heavy oil recovery process. THAI™ is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that combines a vertical air injection well with a horizontal production well. THAI™ integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally.

Petrobank's common shares presently trade on the Toronto Stock Exchange under the symbol PBG.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Contact Information

  • Petrobank Energy and Resources Ltd.
    John D. Wright
    President and Chief Executive Officer
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    Chris J. Bloomer
    Vice-President Heavy Oil and Chief Financial Officer
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    Corey C. Ruttan
    Director Corporate Finance and Investor Relations
    (403) 750-4400
    (403) 266-5794 (FAX)
    Email: ir@petrobank.com
    Website: www.petrobank.com