Petrobakken Provides Update on Swan Hills Activites

Petrobakken Provides Update on Swan Hills Activites 
CALGARY, ALBERTA -- (Marketwire) -- 12/03/12 -- PetroBakken Energy
Ltd. (the "Company" or "PetroBakken") (TSX:PBN) is pleased to
announce recent exploration developments with respect to the highly
prospective Beaverhill Lake formation in the Swan Hills area, which
we have targeted as one of our key new resource growth areas. Recent
farm-in agreements with Arcan Resources Ltd. ("Arcan") has enabled us
to secure up to 21.5 (11.25 net) sections of land within the
prospective areas of the play by drilling 5 commitment wells and 2
option wells. Upon completion of these farm-in wells and combined
with our existing acreage, we will have 90.5 (78 net) sections of
land in this play with more than 175 potential net drilling locations
To date, we have drilled 1 well and participated in 1 (0.5 net)
farm-in well, and we are currently drilling 2 additional net wells
targeting light oil in the Swan Hills area. We plan to be an active
driller in the area with current plans to drill between 5 and 7
additional wells targeting the Beaverhill Lake formation by the end
of the first quarter of 2013. 
We are also pleased to announce that we have acquired 7,055,500
common shares of Arcan at an average price of $0.89 per share. These
shares, which represent 7.2% of the issued and outstanding shares of
Arcan, were acquired through the facilities of the CNSX Pure Trading
exchange. As a result of this acquisition, PetroBakken now owns
16,605,900 common shares of Arcan, representing approximately 17% of
the total issued and outstanding common shares of Arcan as of the
date hereof, on a non-diluted basis.  
An Early Warning Report detailing this ownership position will be
filed on the System for Electronic Document Analysis and Review
("SEDAR") and can be viewed at 
PetroBakken acquired the Arcan shares for investment purposes only.
The investments will be reviewed on a continual basis, and our
holdings may be increased or decreased in the future, depending upon
economic or market conditions or matters relating to Arcan.  
PetroBakken Energy Ltd. is an oil and gas exploration and production
company combining light oil Bakken and Cardium resource plays with
conventional light oil assets, delivering industry leading operating
netbacks, strong cash flows and production growth. PetroBakken is
applying leading edge technology to a multi-year inventory of Bakken
and Cardium light oil development locations, along with a significant
inventory of opportunities in the Horn River and Montney gas resource
plays in northeast BC. Our strategy is to deliver accretive
production and reserves growth, along with an attractive dividend
Forward Looking Statements. Certain information provided in this
press release constitutes forward-looking statements. Specifically,
this press release contains forward-looking statements relating to
future drilling activities, the earning of lands under farm-in
agreements, potential drilling locations, anticipated capital costs
of certain projects and potential changes to our investment in Arcan.
The forward-looking statements are based on certain key expectations
and assumptions, including expectations and assumptions concerning
the availability of capital, the success of future drilling,
completion, recompletion and development activities, the performance
of new and existing wells, prevailing commodity prices and economic
conditions, the availability and cost of labour and services, weather
and access to drilling locations and the geological nature of the
formations targeted. Although we believe that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because we can give no assurance that they
will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, risks
associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production; delays
or changes in plans with respect to exploration or development
projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, reliance on industry partners,
availability of equipment and personnel, uncertainty surrounding
timing for drilling and completion activities resulting from weather
and other factors, changes in applicable regulatory regimes and
health, safety and environmental risks), commodity price and exchange
rate fluctuations and general economic conditions. Certain of these
risks are set out in more detail in our Annual Information Form which
has been filed on SEDAR and can be accessed at Except
as may be required by applicable securities laws, PetroBakken assumes
no obligation to publicly update or revise any forward-looking
statements made herein or otherwise, whether as a result of new
information, future events or otherwise. 
Natural gas volumes have been converted to barrels of oil equivalent
("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to
one barrel of oil equivalent based on an energy equivalency
conversion method primarily attributable at the burner tip and does
not represent a value equivalency at the wellhead. Boes may be
misleading, especially if used in isolation. 
PetroBakken Energy Ltd.
John D. Wright
President and Chief Executive Officer
(403) 268-7800 
PetroBakken Energy Ltd.
Peter D. Scott
Senior Vice President and Chief Financial Officer
(403) 268-7800 
PetroBakken Energy Ltd.
Bill A. Kanters
Vice President Capital Markets
(403) 268-7800
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