PetroGlobe Inc.

PetroGlobe Inc.

March 08, 2005 09:00 ET

PetroGlobe Inc. Announced Today the Status of its 2004 Operational Activities and Plans for 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PETROGLOBE INC.

TSX VENTURE SYMBOL: PGB

MARCH 8, 2005 - 09:00 ET

PetroGlobe Inc. Announced Today the Status of its 2004
Operational Activities and Plans for 2005

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - PetroGlobe Energy USA
Ltd., a wholly owned subsidiary of PetroGlobe Inc. (TSX VENTURE:PGB),
entered into an participation agreement with Vintage Petroleum, Inc. of
Tulsa, Oklahoma. The agreement allows PetroGlobe to earn a 10% working
interest within a defined Area of Mutual Interest (AMI) of approximately
63,000 acres in Motley and Floyd Counties of West Texas. The first of
two planned exploratory wells to evaluate the commercial potential of
the unconventional shale gas play has been drilled and is currently
being evaluated by Vintage as the operator of the project.

In 2004, PetroGlobe drilled 4 wells in the Bolloque and Cynthia areas of
central Alberta with three of the wells encountering natural gas. The
wells were completed and currently are being evaluated for stimulation
to increase productivity. The company has several additional locations
in the area that it expects to drill in the third quarter of this year.
Following the drilling and completion of these wells, the company
expects to have the threshold volumes needed to begin construction of
the gathering system and a sales gas line.

PetroGlobe also announces the successful negotiation of a 6 townships
farm-in with a major operator in the Pembina area of Alberta. The
farm-in includes all rights from surface to the base of the Edmonton
Group. Multiple targets in Paskapoo, Scollard, Edmonton and Bearpaw
sands have been mapped and identified. Infrastructure is available in
the area and depending on the availability of rigs and spring break-up
PetroGlobe anticipates beginning drilling within the next two months.
PetroGlobe has identified 40 to 60 potential locations over the next two
years.

These programs will require approximately $4 million of capital in 2005.
Management is currently evaluating its funding options and expects to
make an announcement in the near future.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    PetroGlobe Inc.
    John Loh
    President & CEO
    (403) 265-4488
    Email: jloh@petroglobe.com
    or
    PetroGlobe Inc.
    Dave Harris
    Vice President & CFO
    (403) 265-4488
    Email: dharris@petroglobe.com
    This release may contain certain statements that may deem to be
    forward-looking. The contents of this release has not been approved by
    the TSX