Petrobank Energy and Resources Ltd.

Petrobank Energy and Resources Ltd.

March 23, 2005 06:00 ET

Petrobank Announces the Redemption of an Additional $17.2 Million of Subordinated Notes


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PETROBANK ENERGY AND RESOURCES LTD.

TSX SYMBOL: PBG
TSX SYMBOL: PBG.NT.A

MARCH 23, 2005 - 06:00 ET

Petrobank Announces the Redemption of an Additional
$17.2 Million of Subordinated Notes

CALGARY, ALBERTA--(CCNMatthews - March 23, 2005) - Petrobank Energy and
Resources Ltd. (TSX:PBG) (TSX:PBG.NT.A) is pleased to announce that we
have given Petrobank Subordinated Noteholders notice to redeem an
additional 20 percent ($17,227,200) of the outstanding Petrobank
Subordinated Notes, on a pro rata basis, pursuant to the terms of the
Note Indenture dated as of July 18, 2001 between Petrobank and
Computershare Trust Company of Canada. This redemption will result in an
additional annualized interest savings of $1.6 million and further
reduces the principal amount outstanding to $68.9 million.

This partial redemption will be completed, on April 22, 2005 at a price
of $100.5178 per $100 principal amount, comprised of $100.00 of
principal and $0.5178 of accrued and unpaid interest. The redemption may
be made at the offices of Computershare Trust Company of Canada at Suite
710, 530 - 8th Avenue S.W., Calgary, Alberta T2P 3S8.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Petrobank Energy and Resources Ltd.
    John D. Wright
    President and CEO
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    Chris J. Bloomer
    Vice-President Heavy Oil and CFO
    (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