Petrobank Provides 2013 Capital Plan and Announces

Petrobank Provides 2013 Capital Plan and Announces Participation at
the CAPP Investment Symposium 
CALGARY, ALBERTA -- (Marketwire) -- 12/10/12 -- Petrobank Energy and
Resources Ltd. (TSX:PBG) announces our 2013 capital plan which
focuses on achieving commercial THAI(R) production rates at our
Kerrobert project, increasing our land base for future THAI(R)
opportunities and maintaining financial flexibility as a stand-alone
independent company. Petrobank's 2013 development capital
expenditures are expected to be approximately $23 million. Total
capital and operating expenditures, including expected operating
costs and maintenance capital, but before net production revenue, for
all our projects and activities, is expected to be less than $50
Kerrobert THAI(R) Project and Kerrobert Trend Areas  
At Kerrobert, our operating plan remains focused on increasing air
injection rates, increasing production rates and reducing operating
costs per barrel. We continue to increase air injection rates, which
is now approximately 16% of design capacity, up from approximately 8%
in late-September. Production rates are expected to react positively
as we continue to increase air injection rates. We have also recently
completed a water disposal well near our Kerrobert project which will
reduce operating costs.  
We continue to evaluate our Kerrobert channel trend lands and
recently completed three vertical stratigraphic wells on our Luseland
properties, a large 3D seismic on our Kerrobert trend lands and a 4D
seismic update at our Kerrobert THAI(R) project. The analysis of the
wells and seismic data will be completed shortly. We plan to complete
one of the vertical wells for cold production by the end of 2012. Our
2013 capital plans include the drilling of 12 vertical wells for
stratigraphic evaluation and potential cold heavy oil production.  
Capital expenditures in 2013 at our Kerrobert THAI(R) project and
Kerrobert trend lands are expected to be approximately $15 million
before operating expenses. 
Dawson Project  
At Dawson, we commenced cold production operations from our first
horizontal production well in late-October and expect to initiate
cold production at the second horizontal well before the end of 2012.
These wells are expected to produce for a period of time to
pre-condition the reservoir prior to start-up of the THAI(R)
demonstration project.  
Capital expenditures in 2013 at Dawson are expected to be less than
$1 million before operating expenses. The timing and capital
commitment for completion of the THAI(R) demonstration project will
be determined later in 2013. 
Other Opportunities  
Petrobank continues to expand our inventory of potential THAI(R)
development opportunities. We are continuing with research and
development activities at Archon to expand and protect our
intellectual property, along with marketing our technologies to third
parties. Capital expenditures on new development opportunities and
Archon are expected to be approximately $7 million. 
Financial Liquidity and Capital Resources  
Assuming the completion of our previously announced reorganization
with PetroBakken at the end of 2012, Petrobank will begin 2013 as a
well financed heavy oil company leveraging our strong asset base and
patented technology. We expect to have over $100 million of cash and
no third party debt, assuming the receipt of PetroBakken's December
2012 dividend in cash in mid-January, 2013. We expect to fund our
2013 expenditures with cash on hand and sales revenue from
production. Our current capital resources are expected to be more
than adequate for our planned expenditures while providing financial
flexibility to pursue future THAI(R) developments and acquisition
Executive Changes  
We are pleased to announce the promotion of Mr. Kenneth Rossi to Vice
President, Land and Regulatory effective December 7, 2012. Ken joined
Petrobank in March 2008 and was most recently General Manager, Land,
Contracts & Compliance.  
Mr. Robert Richardson, previously Vice President, Exploitation, has
resigned from the Company effective December 6, 2012. We wish to
thank Rob for his past service and wish him the best in his future
2012 CAPP Investment Symposium and Updated Investor Presentation  
Petrobank will be presenting at the Canadian Association of Petroleum
Producers (CAPP) Investment Symposium on Tuesday, December 11, 2012
at 3:00 pm (ET) and on Wednesday, December 12, 2012 at 2:30 pm (ET)
in Toronto, Ontario.  
We have updated our investor presentation and it is now available at The webcast link and presentation slides will be
available at and at the Investment Symposium at htt
"The 2012 CAPP Investment Symposium focuses on the investment
opportunities offered in the high-growth, high-potential Canadian oil
and gas industry. With the third-largest oil reserves in the world
and equally significant natural gas assets, Canada's upstream oil and
gas industry will continue to create significant value for investors,
the industry and all Canadians as global energy demand grows," said
CAPP president Dave Collyer. "CAPP's Investment Symposium will
highlight industry plans to ensure competitiveness and social license
to realize these growth opportunities."  
For more details on the 2012 CAPP Investment Symposium, including the
full program, travel, accommodation and registration information,
please visit:  
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 capital expenditures, timing for development of our various
projects and availability of capital. Forward-looking statements are
necessarily based upon assumptions and judgments with respect to the
future including, but not limited to, the outlook for commodity
markets and capital markets, success of future evaluation and
development activities, the successful application of technology,
prevailing commodity prices, the performance of producing wells and
reservoirs, well development and operating performance, general
economic and business conditions, weather, and the regulatory and
legal environment. The reader is cautioned that assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be incorrect. Actual results
achieved during the forecast period will vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors. You can find a discussion of those
risks and uncertainties in our Canadian securities filings. Such
factors include, but are not limited to: general economic, market and
business conditions; fluctuations in oil prices; the results of
exploration and development drilling, risks associated with the
development and application of early stage technology, recompletions
and related activities; timing and rig availability; fluctuation in
foreign currency exchange rates; the uncertainty of reserve and
resource estimates; changes in environmental and other regulations;
risks associated with oil and gas operations; and other factors, many
of which are beyond the control of the Company. There is no
representation by Petrobank that actual results achieved during the
forecast period will be the same in whole or in part as those
forecast. Except as may be required by applicable securities laws,
Petrobank 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. 
Petrobank Energy and Resources Ltd. is a Calgary-based oil and
natural gas exploration and production company with operations in
western Canada. The Company operates high-impact projects through two
business units and a technology subsidiary. Petrobank's 56% owned
TSX-listed subsidiary, PetroBakken Energy Ltd. (TSX:PBN), is an oil
and gas exploration and production company combining light oil Bakken
and Cardium resource plays with conventional light oil assets.
Whitesands Insitu Partnership, a partnership between Petrobank and
its wholly-owned subsidiary Whitesands Insitu Inc., applies
Petrobank's patented THAI(R) heavy oil recovery process in the field.
THAI(R) is an evolutionary in-situ combustion technology for the
recovery of bitumen and heavy oil. THAI(R) and CAPRI(R) are
registered trademarks of Archon Technologies Ltd., a wholly-owned
subsidiary of Petrobank Energy and Resources Ltd., for specialized
methods for recovery of oil from subterranean formations through
in-situ combustion techniques and methodologies with or without
upgrading catalysts. Used under license by Petrobank Energy and
Resources Ltd.
Petrobank Energy and Resources Ltd.
John D. Wright
President and Chief Executive Officer
Petrobank Energy and Resources Ltd.
Chris J. Bloomer
Senior Vice President and Chief Operating Officer, Heavy Oil
Petrobank Energy and Resources Ltd.
Peter Cheung
Vice President Finance and Chief Financial Officer
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