PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

October 16, 2008 15:25 ET

PetroGlobe Announces Sale of Consulting Division

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2008) - PetroGlobe Inc. (TSX VENTURE:PGB) ("PetroGlobe" or the "Corporation") is pleased to announce the it has entered into a letter of intent to sell PetroGlobe (Canada) Ltd. ("PGCL"), a wholly-owned subsidiary of PetroGlobe that owns and operates the domestic and international oil and consulting operations of the Corporation.

The Corporation has entered into a letter of intent to sell the shares of the consulting company for cash proceeds of approximately $350,000. The sale of PGCL will be effective October 1, 2008 with the closing of the transaction expected to be October 17, 2008.

"The sale of PGCL is part of the Corporation's strategic focus on building and positioning its petroleum and natural gas exploration and production business for continued growth," commented Jason James CEO.

The cash proceeds will be used to fund the Corporation's petroleum and natural gas exploration and production activities in Canada and the United States.

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 $0.05-$0.70. Market capitalization is $7.5 million based on the most recent closing price of $0.15.

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.

FORWARD LOOKING INFORMATION

This PetroGlobe Inc. news release contains 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 Inc.'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 on Alberta and Texas sufficient cash is available for its drilling program through existing balances and future capital raising 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 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.

Volumes reported in barrels of oil equivalent (BOE) are based on conversion of natural gas to oil at six thousand cubic feet per barrel (6 Mcf:1 bbl). BOE may be misleading, particularly when used in isolation, since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release should not be construed to be a solicitation for the purchase of the corporation's common shares.

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

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