PetroGlobe Inc.

PetroGlobe Inc.

April 30, 2009 16:31 ET

PetroGlobe Announces Fourth Quarter and Year End 2008 Reserves and Results

CALGARY, ALBERTA--(Marketwire - April 30, 2009) - PetroGlobe Inc. ("PetroGlobe" or the "Corporation") (TSX VENTURE:PGB) announces it has filed with Canadian securities regulatory authorities its audited financial statements for the year ended December 31, 2008, the accompanying Management's Discussion and Analysis and the Corporation's Statement of Reserves Data and Other Oil and Gas Information. These filings are available for review under the Corporation's SEDAR profile at

2008 Operational and Corporate Highlights Include

- The Company exited 2008 with December's average production of 317 boe/d compared to 174 boe/d for the same period of 2007, representing an increase of 143/boe/d or a 82 percent increase

- Total proved reserves of 4 BCF and total proved plus probable reserves of 4.7 BCF having respective present vales of future net revenues after tax discounted at 10 percent of $10.2 million and $11.5 million at December 31, 2008. Proved plus probable reserves increased 161% over 2007 proved plus probable reserves of 1.8 BCF

- 2008 proved plus probable annual finding and development costs of $8.24/boe

- Completion of two private placements during the year raising gross proceeds of $2.9 million

- Rationalization of oil and gas operations through the sale of certain properties in Texas for proceeds of $750 thousand USD

- Sale of non-core business activities through the sale of PetroGlobe Canada Ltd. (PGCL), which conducted domestic and international consulting operations for gross proceeds of $446 thousand.

- No debt drawn

Operations Update

In the first quarter 2009 the Corporation average production was approximately 380 boe/d through the completion of one tie-in that was commenced in 2008 however brought on stream in January 2009. Current production is approximately 381 boe/d. As a result of the reduced natural gas prices, the Corporation has reduced production on certain wells and has approximately 400 boe/d behind pipe. These wells will be tied-in as prices improve.

The Corporation is preparing to drill its first light oil well and drilling is ready to commence once area road bans are lifted. The Corporation looks forward to sharing the drilling results once they are available.

Forward-Looking Information

This PetroGlobe Inc. news release may contain forward-looking information relating to business strategy, geographic areas of activity, capital expenditures, future drilling, drilling costs, production rates, cash flow, investment payouts and other matters. This information is based on PetroGlobe's current expectations and assumptions as to a number of factors, including access to capital, availability of drilling rigs, weather conditions, drilling success, resulting reserves production, ability to tie-in production, decline rates, commodity prices, exchange rates, interest rates and general economic and industry conditions.

The material assumptions applied were that PetroGlobe Inc. continues its exploration and development focus in Alberta and Texas, sufficient cash is available to fund capital programs, through existing cash balances and future capital raises on acceptable terms, drilling costs are maintained at expected levels, drilling results, reserves and production are within expectations and there is sufficient access to transportation, processing facilities, commodity prices and sales markets. If those expectations and assumptions prove to be incorrect, or factors change, then actual results could differ materially from the forward-looking information contained in this news release.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. PetroGlobe Inc. carries on business directly in Canada. It conducts business indirectly in the United States through PetroGlobe Energy USA Ltd. Major properties are in the Palo Duro basin of West Texas, Drayton Valley, Breton, Warburg and Leduc areas of west-central Alberta.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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