PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

September 08, 2008 16:52 ET

PetroGlobe Announces Asset Sale

CALGARY, ALBERTA--(Marketwire - Sept. 8, 2008) - PetroGlobe Inc. (TSX VENTURE:PGB) ("PetroGlobe" or the "Corporation") announced today that it has sold its 55% working interest in certain leases, wells and pipelines in the Palo Duro Basin in West Texas.

The Corporation has sold its working interest in the McIntosh area, which includes the Corporation's working interest in 2,300 net acres, two wells and a gathering pipeline for cash proceeds of $750,000 USD. PetroGlobe will receive a bonus payment of $500,000 USD if production from the leases reaches 4 mmscfe/d for 30 consecutive days. The Corporation had no assignable reserves associated with the acreage.

Subsequent to the transaction, the Corporation retains approximately 90,000 gross acres (50,000 net acres) of undeveloped land in the Palo Duro Basin.

The proceeds from the sale further strengthens the Corporation's balance sheet and will allow for the acceleration of its Alberta drilling program.

The Company has commenced Rock-Eval analysis on selected wells drilled in the Palo Duro Basin. This will help understand the geo-technical characteristics of the shale gas potential of the Pennsylvanian aged shale on its remaining undeveloped land. The Corporation looks forward to sharing the results with shareholders and the investment community in the future.

ABOUT PETROGLOBE INC.

PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. There are 49.8 million shares outstanding. The 52-week range is $0.15-$0.92. Market capitalization is $11 million based on the most recent closing price of $0.22.

PetroGlobe Inc. carries on business directly in Canada. It conducts business indirectly in the United States through PetroGlobe Energy USA Ltd. Its wholly owned subsidiary, PetroGlobe (Canada) Ltd., is in the business of international oil and gas consulting.

Major properties are in the Palo Duro basin of West Texas, Drayton Valley, Breton, Warburg and Leduc areas of west-central Alberta.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information