Petrobank Energy and Resources Ltd.
TSX : PBG

Petrobank Energy and Resources Ltd.

December 18, 2008 00:54 ET

Petrobank Files May River Application and Appoints Neil McCrank to Board of Directors

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - Petrobank Energy and Resources Ltd. ("Petrobank" or the "Company") (TSX:PBG) is pleased to announce that we have today filed our application for the May River Project with the Energy and Resources Conservation Board and Alberta Environment.

The May River Project is our 10,000 bopd THAI™ commercial demonstration project to be developed on our Whitesands oil sands leases located two kilometers from the current Whitesands pilot project site. We have initiated the front end engineering and design, which is based on a repeatable modular design enabling a staged development plan for future expansions. This project will also incorporate an integrated facilities design with power generation from the recovery of produced gas and sulphur recovery utilizing the CrystaSulf® technology. Ultimately, May River is planned to be built in phases, to a capacity of up to 100,000 bopd of partially upgraded bitumen.

In addition, Petrobank is very pleased to welcome Neil McCrank to our board of directors. Mr. McCrank has a long record of public service in Alberta and Ontario and was the Deputy Minister of Justice and Deputy Attorney General for Alberta from 1989 to 1998. From 1998 to 2007, Mr. McCrank was the Chairman of the Alberta Energy and Utilities Board. Since then, he has been consulted with respect to regulatory matters by all levels of Government in Canada, international Governments, and numerous regulatory organizations and was appointed as Counsel to Borden Ladner Gervais LLP in June of 2008. Mr. McCrank is a Professional Engineer in Alberta and a member of the Law Societies of both Alberta and Ontario.

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 focused on developing a solid production platform from the Bakken light oil play in southeast Saskatchewan, and exploiting a large undeveloped land base through the application of new technology to large oil and gas resource opportunities. The Latin American Business Unit, operated by Petrobank's 76.4% owned TSX-listed subsidiary, Petrominerales Ltd. (TSX:PMG), is a Latin American-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 1.9 million acres in the Llanos and Putumayo Basins of Colombia and 2.6 million acres in the Ucayali Basin of Peru. 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. 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: applicable regulations, required regulatory approvals, 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
    Senior Vice President and Chief
    Operating Officer, Heavy Oil
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    Corey C. Ruttan
    Senior Vice President and Chief Financial Officer
    (403) 750-4400
    or
    Petrobank Energy and Resources Ltd.
    R. Gregg Smith
    Senior Vice President and Chief Operating Officer, Canada
    (403) 750-4400
    Email: ir@petrobank.com
    Website: www.petrobank.com