PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

January 18, 2011 13:52 ET

PetroGlobe Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2011) - PetroGlobe Inc. ("PetroGlobe" or the "Company") (TSX VENTURE:PGB) announces operational update on its recent light oil drilling program in the Edson area located in North West Pembina. 

Prior to year end the Company completed the drilling and multi stage fracture stimulation of its Cardium hz well located in North West Pembina. The well was completed with twelve stage oil fracture stimulation with eleven stages being successfully executed as planned. During the completion of the twelfth and final stage of the fracture stimulation the well screened off in its final flush stage.

Subsequent to completion the Company flowed the well and recovered approximately 868 bbls of oil in 50 hours at which time the well ceased to flow on its own. The Company then attempted to clean the sand out of the well and mill through the balls and ports believed to be restricting flow, with the intention of enabling a production test. The Company believes it successfully milled through the first port however encountered an obstruction shortly beyond that point. The company believes that the fracture treatment interval may have partially collapsed the casing resulting in an interval of approximately 68 meters of damaged casing. The Company believes it has reopened approximately 57 meters of the damaged interval through its work on the section during the last weeks. The Company has shut in the well and currently discussing with its partner and industry experts on further remedial action that may be taken.

ABOUT PETROGLOBE INC.

PetroGlobe Inc. carries on business directly in Canada and is listed on the TSX Venture Exchange and trades under the symbol PGB.

Forward-looking information

This news release contains forward-looking information relating to various matters that may include capital expenditures, cash flow, earnings, future drilling, production rates and other future events. This information is based on PetroGlobe's current expectations and assumptions as to a number of factors, including weather conditions, availability of drilling rigs, drilling success, reserves and production, ability to tie-in production, commodity prices, exchange rates, interest rates, access to capital, general economic and industry conditions and other factors. 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.

Neither 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 release

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