PetroGlobe Inc.

PetroGlobe Inc.

March 17, 2005 08:30 ET

PetroGlobe Inc. Announces Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PETROGLOBE INC.

TSX VENTURE SYMBOL: PGB

MARCH 17, 2005 - 08:30 ET

PetroGlobe Inc. Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - PetroGlobe Inc. (TSX
VENTURE:PGB) announced today that it is undertaking a non-brokered
private placement combination of Flow-Through shares at a price of $0.70
per share and Equity Shares at a price of $0.60 per share, with a
minimum subscription level of $10,000. The offering will raise
$6,000,000. There will be no warrants or convertible securities issued
in conjunction with the common shares.

PetroGlobe Inc. board of Directors has approved the private placement.
No new control persons will be created as a result of the private
placement, and no other material changes will take place.

The sale of the common shares will be completed at the Corporation
office at noon on Friday April 8th, 2005 or such other time as the
subscribers and the corporation may agree upon and is conditional upon
acceptance of the TSX Venture Exchange.

There will be an initial hold period of four (4) month on the resale of
the shares.

PetroGlobe Inc. will use the proceeds of the sale of Flow-Through share
issue for the drilling of shallow gas wells within Alberta, and the
proceeds from the sale of Equity share issue will be used to continue to
participate in appraisal wells in the Company's Texas acreage, for
acreage acquisitions in West Texas and for general corporate expenses.

This Press Release should not be construed to be a solicitation for the
purchase the Corporation's common shares.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    PetroGlobe Inc.
    John Loh
    President & CEO
    (403) 265-4488
    or
    PetroGlobe Inc.
    Dave Harris
    Vice President & CFO
    (403) 265-4488
    (403) 265-9727 (FAX)
    info@petroglobe.com
    www.petroglobe.com