PetroGlobe Inc.

PetroGlobe Inc.

October 13, 2010 18:58 ET

PetroGlobe Inc. Announces Amended and Increases Proposed Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 13, 2010) -


PetroGlobe Inc. ("PetroGlobe") (TSX VENTURE:PGB) announced today that it amended and increased the size of its previously announced private placement to an aggregate of $4,000,000 and an overallotment option granted to the agents of an additional $400,000 through the issue of units comprised of common shares and warrants and a separate issue of units comprised of flow-through common shares and warrants.

The common share units will each be comprised of one common share and one-half of a common share purchase warrant and issued at a price of $0.11 to raise up to $1,500,000. The flow-through common share units will each be comprised of one flow-through common share and one-half of a common share purchase warrant and issued at a price of $0.14 to raise up to $2,500,000. Each whole warrant will be exercisable to acquire one common share at a price of $0.14 until May 31, 2011.

PetroGlobe intends to use the gross proceeds from the issue of flow-through common shares to incur Canadian Exploration Expense or Canadian Development Expense that may be renounced as Canadian Exploration Expense under the Income Tax Act (Canada) by December 31, 2010.

The offering will be on a private placement basis to accredited investors and other eligible purchasers in Alberta, British Columbia and Ontario and the securities issued will be subject to resale restrictions for four months after the closing. Closing of the offering is anticipated to occur on or about October 27, 2010.

PetroGlobe has engaged Emerging Equities Inc. to lead a syndicate of agents, including Burgeonvest-Bick Securities Limited, in connection with the private placement on a commercially reasonable best efforts basis. The agents will receive a 6.5% cash commission plus, if a specified minimum proceeds are raised, common share purchase options to acquire that number of common shares equal to 6% of the number of common share and flow-through share units subscribed for under the offering. Each option will be exercisable at a price of $0.11 until twelve months after closing. The agents have also been granted an overallotment option not to exceed $400,000 of either common shares or flow through units for a period not to exceed 30 days after closing.

PetroGlobe also announces a correction to a portion of its September 21, 2010 news release. The number of common share purchase options with an exercise price of $0.16 granted to directors of PetroGlobe in accordance with its stock option plan was 1,000,000 than the 700,000 previously stated.

About PetroGlobe Inc.

PetroGlobe is a Calgary, Alberta based public company, engaged in the exploration, development and production of petroleum and natural gas in Canada. PetroGlobe's focus is on high working interest, company-operated properties in Alberta, including Pembina Cardium light oil, Pembina Edmonton Sands natural gas and Sawtooth oil in the Grand Forks/Taber area of southern Alberta. PetroGlobe's common shares are listed on the TSX Venture Exchange and trade under the symbol PGB.

Forward-Looking and Cautionary Statements

Certain information included in this news release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although PetroGlobe believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because PetroGlobe can give no assurance that such expectations will prove to be correct. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by PetroGlobe and described in the forward-looking information. The material risk factors affecting PetroGlobe and its business are similar to those of other companies engaged in the business of exploring for and producing oil and gas.

The forward-looking information contained in this news release is made as of the date hereof and PetroGlobe undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Regulatory Matters Neither the 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 news release. The proposed offering is subject to regulatory approval.

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