PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

February 29, 2008 15:09 ET

PetroGlobe Inc.: Private Placement News Release

CALGARY, ALBERTA--(Marketwire - Feb. 29, 2008) - PetroGlobe Inc. ("PetroGlobe" or the "Corporation") (TSX VENTURE:PGB) is pleased to report that it has closed its previously announced private placement for total proceeds of $2 million. The placement consisted of the issuance of 10 million Common Shares at $0.20 per Common Share.

"The proceeds from the placement will be used to advance the Corporation's exploitation and development plans in Alberta and continue its exploration activities in West Texas," commented Jason James, Chief Executive Officer. "With our renewed vision, management team addition, and cost control we are confident we can take advantage of the improved market conditions."

In the short term in Alberta this will allow the Corporation to move from pure exploration to exploitation where it can grow production and increase cash flow by leveraging off existing infrastructure. This will strengthen the Corporation's ability to continue with ongoing exploration activities in West Texas.

"There are a number of overlooked areas and bypassed zones throughout the Corporation's existing and adjacent lands," commented Dr. Karsten Nielsen, Vice President Exploration. "We are looking forward to deploying these proceeds to take advantage of and investigate these opportunities."

The Corporation announces it has granted options to acquire up to 390,000 options to acquire common shares of PetroGlobe in accordance with the Corporation's stock option plan.

ABOUT PETROGLOBE INC.

PetroGlobe Inc. is listed on the TSX Venture Exchange and trades under the symbol PGB. There are 46 million shares outstanding. The 52-week range is $2.10-$0.17 Market capitalization is $14.7 million based on the most recent closing price of $0.32.

PetroGlobe Inc. carries on business directly in Canada. It conducts business indirectly in the United States through PetroGlobe Energy USA Ltd. Its wholly owned subsidiary, PetroGlobe (Canada) Ltd., is in the business of international oil and gas consulting.

Major properties are in the Palo Duro basin of West Texas, Drayton Valley, Breton, Warburg and Leduc areas of west-central Alberta.

FORWARD LOOKING INFORMATION

This PetroGlobe Inc. news release contains forward-looking information relating to business strategy, geographic areas of activity, capital expenditures, future drilling, drilling costs, production rates, cash flow, investment payouts and other matters. This information is based on PetroGlobe Inc.'s current expectations and assumptions as to a number of factors, including access to capital, availability of drilling rigs, weather conditions, drilling success, resulting reserves production, ability to tie-in production, decline rates, commodity prices, exchange rates, interest rates and general economic and industry conditions.

The material assumptions applied were that PetroGlobe Inc. continues its exploration and development focus on Alberta and Texas sufficient cash is available for its drilling program through existing balances and future capital raising on acceptable terms, drilling costs are maintained at expected levels, drilling results, reserves and production are within expectations and there is sufficient access to transportation, processing facilities and sales markets.

If those expectations and assumptions prove to be incorrect, or factors change, then actual results could differ materially from the forward-looking information contained in this news release.

Volumes reported in barrels of oil equivalent (BOE) are based on conversion of natural gas to oil at six thousand cubic feet per barrel (6 Mcf:1 bbl). BOE may be misleading, particularly when used in isolation, since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release should not be construed to be a solicitation for the purchase of the corporation's common shares.

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