petobakken

[prince_jake_33]

CALGARY, ALBERTA--(Marketwire - Jan. 19, 2012) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN.TO - News), is pleased to announce that we have entered into an agreement to sell our entire working interest in the southeast Saskatchewan Weyburn unit (approximately a 2.2% interest) (the "Assets") for gross proceeds of $105 million, subject to adjustments. The Assets include 580 boepd of production (based on field estimates from December 2011). The transaction will have an effective date of January 1, 2012 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close by the end of February 2012. Approximate transaction metrics in respect of this sale of these non-core Assets are $180,000 per flowing boe (based on field estimated December 2011 average production), 9 times 12 month trailing cash flow (October 2010 to October 2011) and $23 per boe of gross proved plus probable reserves.

[dan_s]

PetroBakken has a large stake in the Cardium Light Oil Play. I have been doing a lot of work on Vero Energy, which is a pure play on the Cardium. The netbacks on Cardium wells are fantastic. A good Cardium well can payout in 12-18 months with oil at $90/bbl.

Rumor that ExxonMobil is targeting Penn West to get into the Cardium.

I am expecting strong 4th quarter numbers from PetroBakken and their guidance should be for significant growth coming from the Cardium.

[dan_s]

Go to our home page and click on the Derrick Petroleum link (lower right hand corner). Run a search on the Cardium. You will find that this area is red hot in Alberta. Horizontal drilling has "cracked the code" for the Cardium.

[prince_jake_33]

Sorry I meant to post this later information.

PETROBAKKEN ANNOUNCES $427 MILLION SALE OF NON-CORE SOUTHEAST
SASKATCHEWAN BAKKEN ASSETS
Calgary, Alberta – February 16, 2012 – PetroBakken Energy Ltd. (“PetroBakken” or the “Company”)
(TSX:PBN), announces that we have entered into an agreement to sell certain non-core southeast
Saskatchewan assets (the “Non-Core Assets”) to Crescent Point Energy Corp. for gross cash proceeds
of $427 million, subject to closing adjustments (the “Transaction”). The Non-Core Assets are considered
to be outside the key focus of our Bakken Business Unit as they are largely non-operated and generally
have lower average working interest than our remaining lands. Proceeds from the Transaction will initially
be used to further pay down our credit facility, leaving at least $1.1 billion in available borrowing capacity.
As a result of this sale, we will be revising our capital plan and may increase spending in the second half
of 2012, primarily in the Cardium area. We will provide revised guidance with respect to our 2012
expected capital spending and exit production levels in the near future.
Non-Core Asset Details:
• Approximately 2,900 boepd of Bakken light oil production (January 2012 field estimate)
• 10.5 million boe (7% gas) of gross proved plus probable reserves (as evaluated by Sproule
Associates Limited according to NI 51-101 effective January 1, 2012)
• 20,360 net acres of land, which includes 14,030 net developed acres

[dan_s]

Study up on the Cardium Light Oil play in Alberta. It is turning into one of Canada's Red Hot oil plays.

It will keep a lot of PDS rigs busy this year.

[ko10068]

Raymond James on PBN:

PetroBakken Energy Ltd.


Justin Bouchard P.Eng., CFA | 403.509.0523 | justin.bouchard@raymondjames.ca
Christopher Cox (Associate) | 403.509.0562 | christopher.cox@raymondjames.ca

Intermediate Oil & Gas Producers

"Non-Core" Bakken Asset Sale for $427 mln

Event
Yesterday after market, PetroBakken announced it has entered into an
agreement for its second non-core asset sale in 2012, selling 2,900 boe/d of
Bakken production to Crescent Point for gross proceeds of $427 mln. The sale
consists of minority interests in producing properties currently operated by
Crescent Point which are located outside of the area that management
described as non-core. The transaction has an effective date of Jan-01-12 and is
expected to close in mid-March.

Recommendation
We are maintaining our Market Perform rating but increasing our target price
to $15.00 from $14.00. While we are encouraged by the recent initiatives that
the company has undertaken to improve its financial position (this transaction
included), we believe the current share price reflects the fair value of the
company’s assets under a going concern basis.

Analysis
To be clear, we like this deal for PetroBakken. The cash infusion further
improves the company’s financial flexibility and should allow the market to refocus
on what will hopefully be improved operational performance. From the
perspective of PBN, the metrics of the deal also look good; $147,250/boe/d of
production and $40.50/boe of 2P Reserves, relative to the company’s current
trading metrics of $96,045/boe/d and $27.97/boe.

However, while we are positive on the deal, we are cautious on trying to
extrapolate an overall valuation from the transaction. While the company may
view the assets sold in this package as non-core from an operational
perspective, the assets themselves are in the core of the Bakken. In our view,
the price paid was reflective of two things: 1) the high quality of the Bakken
assets sold and 2) the strategic value of the assets to the acquirer. As such, we
don’t believe that applying the metrics from this transaction to the remainder
of PetroBakken’s Bakken assets is warranted.

Valuation
Our $15.00 target price is based on our 2012E Risk Adjusted NAV of $11.76 per
share and a 4.0x multiple to our 2013 cash flow per share estimate of $4.51. In
setting our target price, we have applied a 50% weighting to each.