PetroGlobe Inc.
TSX VENTURE : PGB

PetroGlobe Inc.

August 08, 2006 12:08 ET

Petroglobe Updates 2006 Operations

CALGARY, ALBERTA--(CCNMatthews - Aug. 8, 2006) - PetroGlobe Inc. (TSX VENTURE:PGB) is pleased to provide a third quarter operational update.

Summary

In Alberta, six Pembina area wells have been tied-in. We expect stabilized average operated production of 300 mcf/d (8.6 e3m3) per well, with an average net working interest of 39%. Drilling has commenced on the nine wells in the next stage of the Pembina program. In addition to the ongoing Palo Duro activities in Texas, the company acquired a lease with a well in Brown County. Testing of the well will provide additional information to evaluate a new deep, multi-zone potential in West Texas.

Alberta

PetroGlobe now has a total of six Pembina area wells that have been tied-in, five to the Keystone gas plant, and one to the Knob Hill gas plant. Seven more wells are still awaiting tie-in, and management expects similar production rates from these wells. Additional compression will be added in the second half to maximize gas flow rates to sales points.

One of the wells awaiting tie-in, 16-31-47-03 W5, received a high pressure fracture stimulation in two zones to improve flow rates. Based on the positive initial test results, this technique may be applied for future stimulation of wells in the area.

The next stage of activity at Pembina is a nine well drilling program. All wells have been licensed and drilling has commenced. Pre-licensing work has begun on an additional 18 potential locations in the Pembina area.

In the Leduc area, the 05-12-50-26 W4 was re-entered and fracture stimulated. Initially anticipated to be a gas well, subsequent test production has produced oil and it is expected to continue at an economic rate.

Texas

PetroGlobe is continuing our core activities in the Palo Duro basin. Management has permitted locations and plans to drill four wells as soon as equipment is available.

In addition to our core activities, PetroGlobe has acquired the Ceshell lease in Brown County, Texas. Regional geological studies indicate that this area has multiple pay zone potential. The Ceshell lease has one well on the property. The well was re-completed by opening additional pay zones and stimulating the well. If the test is successful, additional leases in the area may be acquired.

About PetroGlobe Inc.

PetroGlobe Inc. is listed on the TSX Venture Exchange, symbol PGB. There are 26.9 million shares outstanding, 28.3 million fully diluted. The 52-week range is $0.76 - $2.20. The market cap is $41.1 million based on a recent trade of 1.70. PetroGlobe Inc. is an oil and gas exploration and production company. Major properties are in the Palo Duro Basin of West Texas and the Cynthia, Pembina and Leduc areas of West-Central Alberta.

This press release contains forward-looking information. Actual future results may differ materially from those contemplated.

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

Contact Information

  • PetroGlobe Inc.
    John Loh
    President & CEO
    (403) 265-4488
    or
    PetroGlobe Inc.
    Dave Harris
    Vice President & CFO
    (403) 265-4488
    (403) 265-9727 (FAX)
    Email: info@petroglobe.com
    Website: www.petroglobe.com