PetroGlobe Inc.

PetroGlobe Inc.

September 21, 2010 11:09 ET

PetroGlobe Inc. Announces Proposed $3,000,000 Private Placement

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2010) -


PetroGlobe Inc. ("PetroGlobe") (TSX VENTURE:PGB) announced today that it plans to raise up to an aggregate of $3,000,000 through the issue of units comprised of common shares and warrants and a separate issue of flow-through common shares. 

The units will each be comprised of one common share and one-half of a common share purchase warrant and issued at a price of $0.14 to raise up to $1,000,000. Each whole warrant will be exercisable to acquire one common share at a price of $0.17 until May 31, 2011.

The flow-through common shares will each be issued at a price of $0.17 to raise up to $2,000,000. 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 7, 2010.

Emerging Equities Inc. will act as placing agent and may form a selling group and invite co-agents comprised of members of the Investment Industry Regulatory Organization of Canada to participate in the offering. The agents will receive a cash commission plus, if specified minimum proceeds are raised, options to acquire that number of units equal to 5% of the number of units and flow-through common shares issued. Each option will be exercisable to acquire one unit at a price of $0.14 until twelve months after closing.

PetroGlobe announces it has granted 700,000 common share purchase options with exercise price of $0.16 per common share purchase option to directors of the Company in accordance with its stock option plan.

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.

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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