PetroReal Energy Inc.
TSX VENTURE : PNI

April 30, 2009 13:47 ET

PetroReal Energy Inc. Announces Restatement and Delay in Filing 2008 Financial Statements

CALGARY, ALBERTA--(Marketwire - April 30, 2009) - PetroReal Energy Inc. (TSX VENTURE:PNI) ("PetroReal" or the "Corporation") advises that it intends to restate its financial statements and related MD&A for the year ended December 31, 2007. The restatement required is due to errors in estimating its asset retirement obligations and in the determination of impairment in the carrying costs of its oil and gas properties as at December 31, 2007.

The 2007 restatement adjustments and related audit work will result in a late filing of its annual financial statements, MD&A and National Instrument 51-101 reports ("year end disclosure") for the year ended December 31, 2008, which are due to be filed before or on April 30, 2009 pursuant to relevant securities law. When filed, the 2008 financial statements will include, for comparative purposes, the restated financial statements for 2007. To protect all shareholders, PetroReal has made an application to the applicable provincial securities commissions under National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults requesting that a cease trade order be imposed in respect of the late filing.

In addition, the Corporation filed a change in auditors notice and former and successor auditor letters with applicable provincial securities commissions on April 28, 2009 in accordance with National Instrument 51-102, Section 4.11. PetroReal is working with its new auditors to complete the audit of the Corporation's financial statements for the year ended December 31, 2008 as soon as possible and anticipates filing the year end disclosure on SEDAR by May 15, 2009. Until the year end disclosure is filed, the Corporation intends to satisfy the provisions of the Alternate Information Guidelines as set out in the Policy for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release.

The Corporation confirms it is not subject to any insolvency proceeding and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

About PetroReal: PetroReal Energy Inc. is a Calgary, Alberta, Canada based emerging, TSX Venture Exchange listed company focused on the exploration, development and production of crude oil and natural gas, primarily in North America. The Company operations are located in central and southern Alberta, southwestern Saskatchewan in Canada and Louisiana in the United States.

Forward-looking Statements: This press release contains forward-looking statements. The words or phrases "would be," "will" "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," or similar expressions are intended to identify "forward-looking statements". The Corporation's business is subject to various other risks and uncertainties, which may be described in its corporate filings (www.sec.gov and www.sedar.com). Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Corporation cautions readers not to place reliance on such statements. Kodiak undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

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.

Contact Information

  • PetroReal Energy Inc.
    Ernst Schlotter
    Director, President and CEO
    (403) 269-2044
    (403) 269-2042 (FAX)
    Email: eschlotter@petroreal.ca
    or
    PetroReal Energy Inc.
    Suite 405, 505 - 8 Avenue S.W.
    Calgary, Alberta T2P 1G2
    Website: www.petroreal.ca