Petrobank / PetroBakken

[dan_s]

For each share of Petrobank you effectively own 1.03 shares of PetroBakken. What PetroBakken has in the Cardium play has HUGE upside. Keep that in mind as you read this. - Dan

CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) - PetroBakken Energy Ltd. (TSX:PBN - News) is pleased to announce our capital plans for 2011 and a $200 million commitment increase to our credit facility. Current plans anticipate capital development expenditures of $680 million focused predominantly on horizontal drilling and completions in the Bakken and Cardium light oil plays. We also plan spending of $120 million for land, seismic, well recompletions and direct administration expenses that will bring our total 2011 capital expenditures to $800 million. We expect that this drilling-focused capital plan will generate a 2011 exit production rate between 46,000 and 49,000 boepd. Our funds flow from operations and our $1.2 billion credit facility are expected to fund this activity and maintain our $0.96/share per annum dividend.

Capital plans for 2011 will focus primarily on our light oil resource plays in central Alberta for the Cardium and in southeast Saskatchewan for the Bakken as well as our Mississippian conventional light oil plays. The majority of our 2011 capital spending will be used to to drill, complete and equip over 200 net wells (due to bilateral wells this represents over 255 net horizontal well bores) for approximately $590 million. The plan also includes facilities investments of $70 million, primarily in southeast Saskatchewan, to handle new production as well as improve existing production efficiencies. A further $20 million will be spent on enhanced oil recovery (EOR) pilots within the Bakken.

[dan_s]

"Exit production for 2011 is expected to be between 46,000 and 49,000 boepd, up from 42,500 boepd for year-end 2010 (based on field estimates), including replacing 2011 base production decline of approximately 40 percent. Most of our production growth is expected to come from the Cardium area in central Alberta while our more mature assets in southeast Saskatchewan are expected to remain relatively flat. Approximately 85% of our production is light oil and NGLs."

Very important to note that 42,500 boepd would be a nice increase over their 40,096 boepd in the 3rd quarter.