PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

September 02, 2005 10:08 ET

PetroGlobe Inc. Updates Its Activities in West Texas and Alberta

CALGARY, ALBERTA--(CCNMatthews - Sept. 2, 2005) - PetroGlobe Inc. (TSX VENTURE:PGB):

PetroGlobe Inc. announces that its leasing activities are proceeding as planned in West Texas with signed and working leases amounted to approximately 90,000 gross acres in Floyd, Swisher and Hale Counties. The lands are being acquired by a joint venture of PetroGlobe Energy USA Ltd and a private Canadian company. PetroGlobe holds a 55% W.I. and is the designated operator of the project. PetroGlobe will have close to 55,000 acres including the 10% interest in the Vintage AMI block. The management is currently evaluating the merits of acquiring additional acreage within the area of interest.

PetroGlobe's "Area of Interest" is based on geological interpretations and information from the existing well controls. Leasing activities are concentrated in areas where the Pennsylvania Shale sections are thickening and also where there are oil/gas potentials in the shallower horizons (San Andreas Dolomite, Wolfcamp Reefs, Cisco Canyon and Strawn Limestone). The acreage acquired so far is in fair sized contiguous blocks so that the company can control the pace of exploration and eventual development.

Once the acreage clears titles, PetroGlobe plan to select and stake several locations designed to validate the lands. It is anticipated that we will start the drilling of the first well late this fall or early 2006 pending availability of the rig.

In Alberta, PetroGlobe Inc, completed negotiation and executed an farm-in agreement with a major company in the Pembina area. The agreement covers 6 townships with gross acreage of about 43,000 acres. PetroGlobe(50%) and partner(50%) will drill 10 commitment wells and will then have the rolling options to drill additional wells from surface to the base of the Edmonton Group including CBM prospects. The company has completed the survey of 13 drill sites and is in the process of obtaining pooling agreements. A drilling rig has been contracted and all other materials and services are being secured. The company plan to start the drilling program in September providing all agreements are in place and weather permitting access of the rig. Discussions are ongoing with gas processing plants in the vicinity to allow quick tie-ins immediately after completion of the wells.

The Pembina project is a low risk play. Multiple zone prospects can be identified from deeper wells drilled. Commercial gas production is expected from Paskapoo, Scollard, Edmonton Sands and Bearpaw Sand. It is anticipated that IP will average more than 200 MCF/D/well.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.

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