PetroGlobe Inc.

PetroGlobe Inc.

November 17, 2010 14:49 ET

PetroGlobe Inc. Completes $500,000 Over Allotment Option

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) -


PetroGlobe Inc. ("PetroGlobe") (TSX VENTURE:PGB) is pleased to announce that with respect to its recently closed equity financing (the "Offering") the syndicate of agents have exercised the over-allotment option (the "Option") granted to them. Pursuant to the Option, the syndicate has acquired an additional 603,180 common share units and 3,097,500 flow through common share units of the Company for gross proceeds to the Company of $500,000 bringing the aggregate gross proceeds of the equity financing to $4,500,000.

Each common share unit is comprised of one common share and one-half of a common share purchase warrant and were issued at a price of $0.11. Each flow-through common share unit is comprised of one flow-through common share and one-half of a common share purchase warrant and were issued at a price of $0.14. 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 was on a private placement basis to accredited investors and other eligible purchasers in Alberta, British Columbia and Ontario and the securities issued are subject to resale restrictions for four months until March 18, 2011.

Emerging Equities Inc. acted as lead agent and Burgeonvest-Bick Securities Limited acted co-agent for the offering. In connection with the Option, the agents received a 6.5% cash commission plus options to acquire 222,041 common shares (being 6% of the number of units issued under the Option). Each option is exercisable to acquire one common share at a price of $0.11 until November 17, 2011.

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, Red Earth Slave Point light oil 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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