Petrobank Energy and Resources Ltd.
TSX : PBG

Petrobank Energy and Resources Ltd.

August 14, 2008 20:14 ET

Petrobank Announces TSX Approval of Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG) is pleased to announce that the Toronto Stock Exchange ("TSX") has accepted its notice to make a normal course issuer bid ("NCIB") to purchase outstanding common shares on the open market, in accordance with the rules of the TSX.

As approved by the TSX, Petrobank is authorized to purchase up to 6,444,777 common shares, representing approximately 10% per cent of Petrobank's current public float. On any trading day, Petrobank will not purchase more than 157,107 common shares. As of today's date, there are 82,667,984 common shares of Petrobank issued and outstanding and Petrobank's public float consists of approximately 64,447,775 common shares.

Petrobank is authorized to make purchases during the period of August 18, 2008 to August 17, 2009, or until such earlier time as the NCIB is completed or terminated at the option of Petrobank. Any common shares Petrobank purchases under the NCIB will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of the transaction. Common shares acquired under the NCIB will be cancelled.

Petrobank believes that from time to time, the market price of its common shares may not reflect their underlying value. Our strong balance sheet and cash flow present us with the opportunity to capitalize on the current valuation of Petrobank in the market which, in our opinion, does not fairly represent the value and potential of our unique asset base. The purchase of common shares for cancellation will be advantageous to our shareholders by increasing the value of common shares remaining.

Petrobank's 76.2% subsidiary, Petrominerales Ltd. ("Petrominerales"), has also announced that the TSX has approved a normal course bid with respect to Petrominerales' common shares. While Petrobank may choose to participate in Petrominerales' normal course issuer bid, Petrobank does not intend to reduce its percentage ownership of Petrominerales pursuant to Petrominerales' normal course issuer bid.

Petrobank Energy and Resources Ltd.

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 and a technology subsidiary. The Canadian Business Unit is developing a solid production platform from low risk gas opportunities in central Alberta and an extensive inventory of Bakken light oil locations in southeast Saskatchewan, complemented by new exploration projects and a large undeveloped land base. The Latin American Business Unit, operated by Petrobank's 76.2% owned TSX-listed subsidiary, Petrominerales Ltd. (trading symbol: PMG), is a Latin American-based exploration and production company producing oil from three blocks in Colombia and has contracts on 15 exploration blocks covering a total of 1.6 million acres in the Llanos and Putumayo Basins. Whitesands Insitu Partnership, a partnership between Petrobank and its wholly-owned subsidiary Whitesands Insitu Inc., owns 75 net sections of oil sands leases in Alberta, 36 sections of oil sands licenses in Saskatchewan and operates the Whitesands project which is field-demonstrating 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 integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally. THAI™ and CAPRI™ are registered trademarks of Archon Technologies Ltd., a wholly-owned subsidiary of Petrobank.

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 the timing of a 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 Petrobank 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, Petrobank 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

  • 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
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    Corey C. Ruttan
    Vice-President Finance and Chief Financial Officer
    (403) 750-4400
    Email: ir@petrobank.com
    Website: www.petrobank.com
    or
    Petrobank Energy and Resources Ltd.
    Suite 2600, 240 - 4th Avenue S.W.
    Calgary, Alberta T2P 4H4
    E-mail: ir@petrobank.com
    Website: www.petrobank.com